Bank of America to ask about 40 bankers in Asia to find jobs in other units

HONG KONG – Bank of America plans to ask about 40 bankers in Asia to look for jobs in other divisions as it seeks to manage the industrywide decline in dealmaking while trying to avoid headcount reduction, a person familiar with the matter said.

About half of these client-facing roles are based out of Hong Kong with a focus on China, and the majority of the affected employees are in junior positions, the person said. A few positions in global markets may also be affected, the source added.

Bank of America is one of the few major Wall Street banks to have avoided job cuts in recent months, instead choosing to move bankers into busier areas. The latest redeployment is designed to offer a temporary solution to the dealmaking drought in China and a dramatic slowdown in the world’s second-biggest economy.

While some Wall Street banks are eyeing more rounds of job cuts in Asia in 2023, Bank of America is under less pressure to reduce headcount because it operates its China investment banking and equities business offshore without a domestic operation on the mainland. Several global banks have spent billions in recent years ramping up in the country, acquiring controlling stakes in securities and asset management ventures.

Capital markets businesses for China have been hard hit because global investors, the biggest buyers of Chinese stocks, are shying away from the country due to

escalating geopolitical tensions between the United States and Beijing.

Bank of America has already encouraged some executives to consider new roles serving middle-market clients with annual revenue of US$50 million (S$67.6 million) to US$2 billion as it seeks to beef up its business in the growing sector to meet client demand. For years, the company has relied on attrition as a way to manage headcount. BLOOMBERG