Various investment banks are cutting jobs in Asia, particularly in Hong Kong and mainland China, in the midst of a deals slump.
Asia is suffering from a dealmaking slump driven by uncertainty and weak sentiments. In Hong Kong, for example, its exchange only saw 12 companies raise HK$4.7 billion ($600 million) in the first quarter of 2024, according to data compiled by Deloitte, marking a 30 percent year-on-year drop and a 15-year low.
As a result, various investment banks in the region have been delivering job cuts.
Morgan Stanley
At Morgan Stanley, 50 investment banking jobs are being axed in Asia, which accounts for 13 percent of the 400-strong team in the region. Sources told finews.asia that this includes 40 jobs in Hong Kong and mainland China, alongside others scattered across Southeast Asia.
«That should be it, but if revenues continue to be depressed, there might be selective redundancies,» the source said, adding that the Southeast Asian market has fared better than China but the level of activity is still lower than two years ago.
HSBC
London-based HSBC is also cutting around 30 investment banking jobs in Asia, according to a «Reuters» report citing unnamed sources, with the layoffs starting on Tuesday.
A spokesperson for HSBC did not confirm the job cuts but said that the bank is «continuing to invest in and grow its business, allocating people and resources to the immediate opportunities while being well positioned for market recovery».
More Potential Cuts?
Recruiters in Hong Kong told finews.asia that further investment banking job cuts are expected over the next few months and they will continue until the middle of the year. According to Robert Walters managing director John Mullally, banks will re-evaluate and determine their decisions based on revenue figures.
The second quarter moves follow Asia job cuts that were already made in the first quarter. This includes 20 reported layoffs each at UBS and Bank of America.
