Asian investment banks 'implementing redundancies'

26 June 2012

Many investment banks based in Asia are reacting to the ongoing economic difficulties in Europe and China by implementing a swathe of redundancies.

That is according to several sources in the banking industry, who have told Reuters that major lenders such as Goldman Sachs, UBS, CLSA and Deutsche Bank are among those firms looking to scale-back their operations in Asia.

Insiders indicated that at least 50 professionals have been made redundant over the course of the last three weeks, ranging from senior expatriate bankers to junior employees.

And this trend is expected to continue over the course of the next few weeks and months while issues such as the eurozone debt crisis and China's economic slowdown carry on restricting the ability of companies to invest and prosper.

David Azar, managing director of equities at recruitment firm Pemberton Stewart, commented: "Banks have cut five to seven per cent of staff, which is unusual as this cut usually happens in November and December. We see more cuts in the next few months."

By Claire Archer

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