Morgan Stanley is slashing over 50 investment banking positions in the Asia Pacific region, according to sources familiar with the matter. This move follows a trend among global banks to reduce their presence in the region, largely due to a decline in China’s markets.
These layoffs affect approximately 13% of the Wall Street giant’s investment banking workforce in Asia, amounting to about 400 employees in the region, one source disclosed. The hardest-hit areas are expected to be Hong Kong and mainland China.
The sources, who chose to remain anonymous as they were not authorized to speak publicly, revealed that Morgan Stanley declined to comment on the matter. The job cuts were initially reported by Bloomberg.
This downsizing represents one of the largest reductions to Morgan Stanley’s investment banking team focused on China. It mirrors similar actions taken by other banks grappling with reduced deal-making activities in the country amidst an economic slowdown.
Earlier this year, Bank of America laid off approximately 20 bankers in the region, following a wave of downsizing across the industry by institutions like UBS, Citigroup, and other boutique firms.
Despite these challenges, Morgan Stanley reported a first-quarter profit that surpassed analysts’ expectations. The bank’s total revenue increased to $15.14 billion, up from $14.5 billion the previous year. Notably, investment banking revenue saw a 16% rise compared to the same period last year.
However, in the Asia-Pacific region, the bank’s merger and acquisition advisory fees experienced a significant decline of 41.5% in the first quarter, while equity capital markets fees, including Japan, showed a 26.3% increase compared to the same quarter in 2023.
