Goldman cutting more than 30 Asia investment banking jobs

HONG KONG: Goldman Sachs Group is cutting more than 30 banking jobs in Asia, two sources with knowledge of the matter said, as a challenging markets environment weighs on Wall Street banks’ dealmaking and trading revenues.

The reduction in regional jobs, most of which are in the global banking & markets division, started on Wednesday, said the sources.

China-focused bankers were hit hardest, with nine equities capital markets bankers who are based in Beijing and Hong Kong being laid off, including a managing director, according to another two sources.

Goldman Sachs declined to comment.

The fresh cuts in Asia are part of Goldman’s new round of layoffs globally that will see fewer than 250 jobs go in the coming weeks, according to a fifth person with knowledge of the situation.

Wall Street banks have been reducing headcounts since late last year as a slump in dealmaking weighed on their revenues.

Rival Morgan Stanley planned to eliminate about 3,000 jobs in the second quarter, in its second round of layoffs in six months, Reuters reported last month.

Citigroup is letting go 20 to 25 investment bankers in Asia, mostly junior and based in China and Hong Kong, according to a separate source familiar with the bank’s plans.

Citi’s chief financial officer said Wednesday it would book severance costs associated with around 1,600 job cuts. Since the start of the year, the bank has incurred costs related to a 5,000 headcount reduction taking place across the firm, largely in banking, markets and functions.

In Asia however the bank has hired several hundred people since the start of 2022 in its wealth management division based in Singapore and Hong Kong, the person said.

A Citi spokesperson declined to comment. Bloomberg first reported about the Asia cuts on Thursday.

All sources declined to be identified as they were not authorised to speak to the media.