HSBC, Morgan Stanley 'laying off Asia-Pacific bankers'
Morgan Stanley and HSBC are cutting dozens of investment banking jobs in the Asia Pacific region this week, sources said, as they ramp up cost-cutting, with weaker dealmaking and sluggish markets weighing on business prospects. Morgan Stanley is cutting at least 50 investment banking jobs in the region starting this week, three sources with knowledge of the matter said, affecting around 13 percent of the Wall Street bank's Asia investment banking workforce of 400. Layoffs at the investment banking unit of HSBC, which makes the bulk of its profits in Asia, started on Tuesday and are expected to see the departure of around 30 dealmakers in the region this week, three separate sources said. All of the sources declined to be named as they were not authorised to speak to the media. Morgan Stanley declined to comment on the job cuts. An HSBC spokesperson said the banks is continuing to invest in and grow its business, allocating people and resources to the immediate opportunities, but declined to comment on the job cuts. In January, Bank of America laid off around 20 bankers in the region, following a flurry of investment bank downsizing by UBS, Citigroup and other boutique firms. Outside Asia, US banking giants overall continued to shed employees in the first quarter, with Citigroup seeing the biggest drop. Banks are under pressure to control costs due to the uncertain economic outlook. (Reuters)