Morgan Stanley to cut 7% of investment banking jobs in Asia-Pacific
Morgan Stanley, the investment bank giant, is contemplating a reduction of 7% in its Asia-Pacific investment banking workforce, with China expected to bear the brunt of the cuts.
Bloomberg's report revealed that Morgan Stanley plans to initiate communication with affected bankers, potentially starting this week. More than 40 positions, including those within the capital markets unit, are at risk. Additionally, other divisions within the bank may experience some level of impact.
The report mentioned that a definitive determination regarding the number of job cuts has not been reached at this time.
Morgan Stanley's intention to eliminate 3,000 jobs worldwide by the end of this year, affecting up to 5 per cent of its overall workforce, includes these job cuts.
As the relationship between the United States and China gradually deteriorates, Morgan Stanley's larger team in China, based in Hong Kong, is experiencing a slowdown in deal activity.
Consequently, the firm reduced its Asia-based investment banking workforce by approximately 50 jobs, with a notable impact on roles focused on China, by the end of the previous year.
Over the past five years, the Asia-Pacific region has accounted for 13 per cent of Morgan Stanley's net revenue. In 2022, the region generated $6.7 billion in net revenue for the company.
In a bid to expand its operations across the European Union following Brexit, Morgan Stanley intends to add 200 employees in France by 2025, raising the total staff count in the country to 500. The investment bank is following the footsteps of other US firms, including Bank of America, Goldman Sachs, and Citigroup, in bolstering their presence in the EU.