Goldman, Citigroup begin cutting about 35 investment banking jobs across Asia, say sources

HONG KONG – Goldman Sachs Group and Citigroup are starting to cut another 35 investment banking jobs across Asia this week, after revenue from stock sales and mergers slumped further in the second quarter, people familiar with the matter said.

Goldman made a fresh round of reductions affecting about 15 dealmakers, including nine from equity capital markets, the sources said. Citigroup may eliminate more than 20 jobs, mostly at junior levels, one of the sources said.

Wall Street’s investment banks continue to face a muted environment for dealmaking as macroeconomic concerns and tumultuous markets constrain mergers and acquisitions (M&A).

Equity offerings in the Asia-Pacific slumped by almost a third in the second quarter from the first three months, while announced M&A deals fell 21 per cent, data compiled by Bloomberg shows.

The final number of jobs to be made redundant has not been decided, the sources said.

China cuts

While many banks are eliminating jobs globally, the cuts in Asia – and China in particular – are the biggest in years. China’s economy is struggling to get back on its feet after years of Covid-19 restrictions and crackdowns on everything from financial technology to private education and real estate.

More rounds of cuts are being eyed at the biggest banks, according to interviews with senior executives.

Morgan Stanley in May made another round of reductions affecting 7 per cent of its Asia-Pacific investment bankers, with over 40 jobs at risk. China-focused bankers are taking the biggest hit as deteriorating relations with the United States and weaker economic growth curb dealmaking.

Globally, Goldman is working on its third round of staff cuts in under a year. It eliminated hundreds of jobs last September, followed by another 3,200 at the beginning of 2023. The moves this time are expected to impact fewer than 250 people, and will include more senior employees, Bloomberg News reported.

Citigroup started cutting hundreds of jobs across the company earlier in 2023, and is planning to shed 30 investment banking jobs and 20 more at its corporate bank in London, people familiar said last week.

Citigroup chief financial officer Mark Mason said at a conference on Wednesday that he is expecting severance costs tied to the departure of 1,600 employees in the second quarter, and that so far in 2023 the firm has set aside severance for 5,000 employees affected by job cuts. BLOOMBERG