US banks lay off workers in Asia

China’s economy hit hard due to harsh Covid-19 restrictions

HONG KONG:

Bank of America (BofA) and Citigroup have cut investment banking jobs in Asia, joining global peers in pairing headcount as China deal-making slows.

BofA, which is shrinking its investment banking business globally, dismissed almost half a dozen Hong Kong based jobs on Thursday, two people familiar with the matter said.

Among those workers laid off were David Lam, a managing director in BofA’s Greater China equity capital markets team, and Kevin Yang, a managing director in the bank’s China investment banking team.

Lam confirmed his departure when contacted by Reuters. Kevin Yang could not immediately be reached for comment on Saturday.

Citi, on Thursday, trimmed four jobs from its China investment banking team, said one of the two people and a separate person. The Wall Street bank is laying off less than 1% of its workforce globally, said people familiar with the matter.

BofA and Citi both declined to comment on layoffs involving investment bankers in Asia. All sources were not authorised to speak to the media and declined to be named.

The number of the banks’ remaining China-focused investment bankers could not immediately be learned.

After a record deal making activity in 2021, M&A volumes and stock floats globally tumbled last year as volatility in capital markets and geopolitical tensions took their toll. China-related deals were particularly hit hard as harsh COVID-19 curbs lifted only late in the year, which hammered the economy.

Other major banks that shortened Asia headcount include Goldman Sachs and Morgan Stanley.

JPMorgan has also cut around 20 banking jobs, mostly mid-level bankers focused on China deals, according to two separate sources.

Bloomberg reported on Feb 21 that the bank was laying off 30 bankers in Asia.

“We regularly review our business needs and a small number of employees across Asia Pacific have been affected,” a JPMorgan spokesperson said, declining to comment on the number of layoffs and teams affected.

Nomura Holdings Inc also slashed 18 Asian banking jobs, most of them China-focused investment banking roles, sources have said.

Published in The Express Tribune, March 5^th, 2023.

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