154 Morgan Stanley and HSBC are reportedly slashing investment banking positions in the Asia Pacific region this week as part of cost-cutting measures. Weak dealmaking and sluggish markets in China and Hong Kong are cited as factors influencing the decision. Morgan Stanley is cutting at least 50 investment banking jobs in the region, impacting approximately 13% of its Asia investment banking workforce of 400. Layoffs at HSBC’s investment banking unit, which earns the majority of its profits in Asia, began on Tuesday. Approximately 30 dealmakers are expected to depart from the region this week. Sources familiar with the matter requested anonymity as they were not authorized to speak to the media. While Morgan Stanley declined to comment on the job cuts, an HSBC spokesperson stated that the bank remains focused on investing in and growing its business. The job cuts reflect a broader trend in the industry, with global investment banks facing pressure to reduce costs amid declining income from capital markets and M&A advisory businesses. This marks a shift from previous years when Wall Street banks expanded their operations in Asia to capitalize on increased dealmaking activities, particularly in China. You Might Be Interested In Alphabet and Microsoft Earnings Highlight Significant AI Investments Driving Growth Goldman Sachs Surpasses Profit Expectations, Fueled by Investment Banking Credit Suisse Falls, Merges with Rival UBS Emerson Sells Stake in Copeland to Blackstone for $3.5 Billion Bank Earnings: JPMorgan, Wells Fargo, and Citi Shares Decline Edmond de Rothschild Group to Open Office in Saudi Arabia and Launch Infrastructure Finance Platform
