News: Morgan Stanley Asia implements job cuts: Six managing directors and key china bankers affected

Strategic HR

Morgan Stanley Asia implements job cuts: Six managing directors and key china bankers affected

Within the Asia-Pacific region, Morgan Stanley has commenced a workforce reduction of 7 per cent in its investment banking division.
Morgan Stanley Asia implements job cuts: Six managing directors and key china bankers affected

Morgan Stanley announced a workforce reduction in Asia, leading to the departure of a minimum of six managing directors, including several notable China bankers. This move underscores the bank's response to the demanding environment influenced by escalating tensions between China and the United States, along with sluggish economic growth that has impeded dealmaking in the region.

A recent Bloomberg report revealed that a number of managing directors at the financial institution have been recently let go. The layoffs impacted individuals such as Clarence Kwok, who specialised in mergers and acquisitions in China, Julia Xiao, an experienced professional in corporate finance, and Tony Yin, renowned for his expertise in technology coverage.

The significance of the restructuring is heightened by the fact that certain senior bankers who were terminated had been promoted within the past two years.

In contrast to other banks, Morgan Stanley has traditionally upheld a larger team focused on sourcing deals in the world's second-largest economy. Nevertheless, the underwhelming economic recovery in China, coupled with global investors' hesitance to participate in the market, has resulted in a sharp decline in dealmaking activities. This has played a significant role in the bank's decision to take action.

As per the report, the New York-based firm has commenced communication with the employees in Asia who are affected by the changes. The impacted bankers were primarily based in Hong Kong, Shanghai, and Beijing.

According to sources, Morgan Stanley has initiated a workforce reduction of 7 per cent within its investment banking division across the Asia-Pacific region.

As part of a wider strategic plan to streamline operations, Morgan Stanley aims to reduce around 3,000 positions globally by the end of the current quarter. This reduction would account for approximately 5 per cent of the workforce, excluding financial advisers and the support staff within the wealth management division.

In response to a downturn in deals, the company took significant measures last year by eliminating around 50 investment-banking positions in Asia, with a primary focus on China. According to the report, this reduction in workforce was one of the most significant among Wall Street firms.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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