HomeBusiness NewsCompanies NewsLayoff wave hits Asian investment banking divisions of JPMorgan, Morgan Stanley, HSBCLayoff wave hits Asian investment banking divisions of JPMorgan, Morgan Stanley, HSBC
Global banking giants are slashing Asian jobs, with China bearing the brunt. JPMorgan, Morgan Stanley, and HSBC are restructuring their investment divisions amid shrinking deals and economic uncertainty.
By CNBCTV18.com May 7, 2024, 7:14:07 PM IST (Published)
Between April and May of this year, major players in the global financial arena — JPMorgan Chase & Co, Morgan Stanley, and HSBC Holdings Plc — have initiated significant layoffs in their Asian investment banking divisions. These actions are in response to dwindling deal volumes and economic uncertainties, prompting a need for strategic restructuring.
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JPMorgan Chase & Co recently launched another round of cutbacks, eliminating a minimum of seven positions across sectors like consumer, energy, and healthcare, according to Bloomberg reports on Tuesday, May 7. This move follows two previous rounds of layoffs in Asia last year, totalling approximately 50 positions.
Despite these challenges, the Wall Street giant recently promoted 48 employees to executive positions in Asia, alongside over 100 promotions across Europe, the Middle East, and Africa.
Meanwhile, Morgan Stanley has been reported to embark on its most significant downsizing effort in the Asia-Pacific region in years, according to Bloomberg. It intends to eliminate around 50 roles, with at least 80% of the reductions expected in Hong Kong and China. This decision, announced in mid-April, highlights the economic headwinds gripping China, exacerbated by an enduring real estate crisis.
Despite attempts to delay layoffs in hopes of voluntary exits, the firm finds itself compelled to implement deeper cuts as revenue from China continues to shrink. These impending job cuts mark the most substantial downsizing effort by Morgan Stanley in China in recent memory, particularly significant given China's status as its largest market in the region.
HSBC Holdings Plc has also entered the fray, trimming approximately a dozen positions within its Asian investment banking division, according to Bloomberg. This move is in response to the pronounced downturn in deal-making activity across the region, particularly evident in the Hong Kong and China markets.
HSBC joins the ranks of global competitors like UBS Group AG, Goldman Sachs Group Inc, and Citigroup Inc, all of whom have undergone multiple rounds of job reductions in Asia over the last 18 months amidst a downturn in stock sales and merger activity.
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