HONG KONG—Global investment banks are ramping up their job cuts in Asia as the slowing economy, weak trading and stiff competition undercut the growth expectations they had for the region.
Job cuts in Asia accounted for 8% of global layoffs at major banks in 2011, but the figure grew to 18% in the first quarter, according to the most recent data from London-based research firm Coalition. Headhunters and senior bankers said cuts have accelerated since then.
“People need to be more sober about the pace of [long-term] growth.…If you go back a few years, people plotted a much steeper graph of secular growth in Asia than they might plot today,” said David Ryan, president of Goldman Sachs Asia Pacific excluding Japan. “People are trying to recalibrate their businesses in that context.”
Source: Wall Street Journal