These job cuts— a part of an annual cost trimming plan —will account for a small portion of its total Asia corporate and investment banking staff.
Bank of America is set to cut about two dozen investment banking jobs in Asia, including some top dealmakers, as a slowdown is forcing Western banks to cut costs.
This comes as another blow, after media reports about Goldman Sachs’ plans to cut almost 30 per cent of its 300 investment banking jobs in Asia outside Japan, in response to a fall in activity in the region.
Sources shared with the media, that some bankers handling client coverage and deals will be made redundant, starting this week, with cuts expected in Hong Kong, Singapore and Japan— the bank’s big centres in Asia. However, the total number has not been finalised.
Bank of America’s cuts, which seem to be a part of an annual cost trimming exercise, will account for a small portion of its total Asia corporate and investment banking staff.
The latest cuts in Asia come against the backdrop of a tough deal-making environment as well as a slowdown in major economies including China, Hong Kong and Singapore. The bank’s business has also been eroded by local competitors.
Besides Bank of America and Goldman, many Western banks have also announced plans to scale down their operations in Asia in the past year, as they grapple with slowing revenue growth and higher operating costs in the region.
Barclays said in January that it would cut about 1,000 staff in its investment bank operations worldwide, with the bulk in Asia, while Societe Generale decided to close its equities research desk in India.