Exclusive: Goldman axing nearly 30 percent of Asia investment banking jobs - sources

Fri Sep 23, 2016 3:46pm EDT
 
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By Pamela Barbaglia

LONDON (Reuters) - Goldman Sachs (GS.N: Quote) is cutting almost 30 percent of its 300 investment banking jobs in Asia outside Japan in response to a slowdown in activity in the region, two sources familiar with the matter told Reuters.

The Wall Street bank is reducing the number of bankers working on mergers and acquisitions (M&A), and equity and debt capital markets deals, the sources said. It will be left with slightly more than 200 bankers across Asia.

Most of the jobs cuts are likely to take place in Hong Kong, Singapore and China, where Goldman's main Asian offices are located, according to the sources, who said the process was underway.

A Goldman Sachs spokesman declined to comment.

The company, whose investment banking revenue fell 11 percent to $1.79 billion in the second quarter, has been hit by a lacklustre environment for deals across Asia.

The total value of M&A deals across the Asia-Pacific region has dropped to $572.9 billion so far this year, from $745.7 billion in the same period of 2015, according to Thomson Reuters data.

Goldman said in July it had embarked on a cost-cutting plan that would save $700 million a year in response to a "challenging backdrop" for revenue.

It still tops the Asia-Pacific M&A league tables but in the first half of the year it came third after JPMorgan (JPM.N: Quote) and Citi (C.N: Quote) as the biggest bank by revenue in Asia, according to data published on Friday by industry analytics firm Coalition.   Continued...

 
A sign is displayed in the reception of the Sydney offices of Goldman Sachs in Australia, May 18, 2016. REUTERS/David Gray/File Photo