Sections

ideals
Business Essentials for Professionals

Asia Investment Bank Jobs of Goldman Sachs Planned to be Cut by 25%


09/24/2016


Asia Investment Bank Jobs of Goldman Sachs Planned to be Cut by 25%
There has been a steep clump in the deal making market in Asia and this has forced the Goldman Sachs Group Inc. to plan job cuts in the regions, except Japan, to the tune of about 25 percent of the workforce in the investment-banking jobs there, sources in the market with knowledge of the matter were quoted in the media as saying.
 
The person who was quoted asked not to be identified because the matter is confidential reportedly said that later this year, the New York-based bank plans to make the cutback of about 75 jobs in the region. According to data compiled by Bloomberg data, since 2008, the bank faces its worst Asia ranking in equity issuance this year and the job reduction comes amidst such an environment.
 
A Goldman Sachs spokesman said he was unable to comment to the media.
 
The data showed that Goldman’s ranking plummeted to 11th from second in 2015, its worst showing in about eight years and Asia ex-Japan equity offerings have declined 29 percent this year. Additionally, the bank has been an object of legal scrutiny as well. Goldman has come under scrutiny by authorities in relation to bond sales for 1MDB, the Malaysian government fund at the center of several international investigations into suspected corruption and money laundering, where it is alleged that the bank had underwritten $6 billion of bond sales.
 
Data compiled by Bloomberg showed that as mainland China companies occupying seven of the top 10 positions in advising on Hong Kong initial public offerings this year, the Chinese securities firms are mounting a challenge to western banks like Goldman Sachs and Morgan Stanley in Asia. In the world’s biggest first-time share sale this year, in a Hong Kong initial public offering this week Postal Savings Bank of China Co. raised $7.4 billion.
 
After reporting declines in profit this year, global investment banks have reduced headcount to trim costs. Including the removal of an Asia investment banking co-head position in July, UBS AG trimmed senior management ranks in the region. The bank partly blamed a slowdown in its Asia-Pacific equities business to the one of the reasons for the bank’s pretax profit at its investment bank slumping 48 percent in the second quarter. This year jobs were also cut at Nomura Holdings Inc. and Macquarie Group Ltd.
 
As a reflection of slower trading and investment-banking activity, 15 positions in New York before the end of this year would be eliminated by Goldman Sachs, the bank told U.S. regulators last year. With prior announcements informing New York officials of 408 dismissals, Goldman Sachs has cut jobs at least four times this year. The bank has also extended cutbacks in its fixed-income division to roughly 10 percent of staff, double what it normally culls every year. Reuters earlier reported Goldman is cutting almost 30 percent of the investment-banking jobs in ex-Japan Asia.
 
(Source:www.bloomberg.com)