<p>JPMorgan
Chase & Co. (<a href=”https://www.financemagnates.com/tag/jpmorgan/” target=”_blank” rel=”follow”>JPM</a>) has decided to cut its investment banking team in Asia-Pacific,
mainly in Greater China, according to a recent report by Bloomberg.
People familiar with the matter said that the financial giant wants to reduce the
current workforce in the division by 30 positions.</p><p>JPMorgan Custs Investment
Banking Jobs</p><p>Although
the headcount reduction affects less than 5% of all investment banking
employees in the region, it is still one of the biggest in recent years. JPM
wants to fight the rising pressures of geopolitical tensions and the changing
regulatory environment in China by reducing operational costs. </p><p>However,
senior employees and those with higher experience do not need to worry about
their future in the banking giant. The reduction will reportedly mainly affect
junior-level bankers, Bloomberg has revealed.</p><p>A
Singapore-based spokesperson for JPM commented on the matter, stating that the
company is regularly assessing its business model, and the current review may
indeed affect “a small number of employees” in the Asia-Pacific
region.</p><p>As it turns
out, JPM is not alone in its recent cost-reducing actions. Other big banking names
like <a href=”https://www.financemagnates.com/tag/morgan-stanley/” target=”_blank” rel=”follow”>Morgan Stanley</a> and <a href=”https://www.financemagnates.com/tag/goldman-sachs/” target=”_blank” rel=”follow”>Goldman Sachs</a> have also cut positions in the APAC
region and worldwide due to the slumping revenues of the investment banking
industry.</p><p>Check the recent FMLS22 panel on the acquisition in the era of mayhem.</p><p>Goldman and Morgan Stanley
Reduces Thousands of Positions</p><p>The first
information that Goldman Sachs wants to reduce its headcount <a href=”https://www.financemagnates.com/institutional-forex/goldman-sachs-may-start-new-year-with-4000-job-cuts/” target=”_blank” rel=”follow”>emerged in
December 2022</a>, when the Group’s Chief Executive Officer, David Solomon, revealed
the plan to cut the company’s reliance on volatile investment banking and
trading revenues.</p><p>The initial
reports were confirmed <a href=”https://www.financemagnates.com/institutional-forex/goldman-sachs-joins-layoff-wagon-wants-to-cut-3200-jobs/” target=”_blank” rel=”follow”>just a few weeks later</a>. The layoff process began a month
ago and will ultimately influence 3,200 jobs. More than 30% of the reductions come
from core banking and trading units. Additionally, Goldman Sachs is preparing
to reduce a <a href=”https://www.financemagnates.com/institutional-forex/goldman-sachs-to-slim-down-alternative-investments-that-affect-revenue/” target=”_blank” rel=”follow”>significant part of nearly $60 billion</a> in alternative investments,
per a Reuters report from January.</p><p>On top of that, Morgan
Stanley embarked on a fresh round of headcount reductions to cut the global
workforce by 1,600 or 2% of the total current employment. At the end of the
third quarter, the financial institution had more than 80,000 employees. Employment
has grown rapidly since the start of the pandemic, increasing by 20,000 over
two years.</p><p>Credit
Suisse Wants to Lay Off 9,000 Employees</p><p>However, one
of the most significant cuts in the investment banking division <a href=”https://www.financemagnates.com/institutional-forex/credit-suisse-starts-job-cuts-goes-after-european-investment-bankers/” target=”_blank” rel=”follow”>was recently
announced by Credit Suisse</a>. The Swiss banking giant may lay off more than 10% of
its staff associated with the European investment banking sector, the Financial
Times reported in January.</p><p>The bank
has not officially confirmed the information but indeed faces considerable
problems. In the past, the institution admitted that 9,000 people might need to
be laid off over the next three years.</p><p>Credit
Suisse last week reported an <a href=”https://www.financemagnates.com/institutional-forex/credit-suisse-reports-chf-73-billion-annual-loss-in-2022/” target=”_blank” rel=”follow”>annual loss for 2022 of CHF 7.3 billion</a> after
losing more than 20% of assets under management. According to CEO Ulrich
Körner, such poor performance is “unacceptable.”</p>
This article was written by Damian Chmiel at www.financemagnates.com.
