Hong Kong faces more elite banking job cuts, with Goldman Sachs axing about 100 posts
Wall Street bank to cut its 300-strong Asia team, with Hong Kong likely to take a big hit
More layoffs are expected among Hong Kong’s elite foreign investment bankers, with Goldman Sachs reportedly setting the stage by axing nearly 30 per cent of investment banking jobs in Asia, minus Japan.
The city, which is home to the Wall Street giant’s largest Asian investment banking arm, can expect more job cuts in the high-profile sector, analysts say.
New York-based Goldman, whose investment banking revenue fell 11 per cent to US$1.79 billion in the second quarter, is reducing the number of bankers working on mergers and acquisitions, and equity and debt capital market deals, Reuters said, citing unnamed sources. The firm will be left with slightly more than 200 bankers across Asia.
Calls to Goldman Sachs’ office in Hong Kong went unanswered yesterday.
Bitter battle
“Such a move indicates that Goldman is having a bearish outlook on its prospects in the region, particularly at a time when its mainland rivals are grabbing a bigger market share,”said Benny Mau, chairman of the Hong Kong Securities Association.
