Global investment banks continue to face headwinds with Mitsubishi UFJ Group being the latest to downsize, with half of its securities staff in Asia ex-Japan to be made redundant.
Top MUFJ executives in Tokyo made a decision to make up to 90 of the 180 Hong Kong and Singapore-based securities staff redundant.
Trading operations will almost entirely close and sales and back-office headcount will also face heavy cuts and have responsibilities transferred to London, sources told «Financial Times». Headcount in Asian debt capital markets will be slightly reduced but remain largely intact.
Is London Next?
Staff cuts in MUFG’s London banking and brokerage business which, currently houses 2,000 employees, are also being discussed but have yet to be finalized. In June this year, 500 managing directors and directors were offered voluntary redundancy as part of a plan to shed 50 staff.
«We constantly review our business in all markets in which we have a presence to ensure we remain competitive and relevant to clients,» a spokesperson for the bank said on the matter. «And as a general point, we don't comment on speculation or rumor.»
The broader investment banking sector continues to struggle due to slowing global growth with revenues plummeting to a 13-year low, according to Coalition research group. Revenue at the largest American and European investment banks posted an 11 percent decrease to $76.8 billion in the first half of 2019.
