(MENAFN) Morgan Stanley is set to initiate the reduction of approximately 50 investment-banking positions in the Asia-Pacific region this week, with a significant portion, at least 80 percent, expected to occur in Hong Kong and China. The planned workforce adjustments are anticipated to impact around 13 percent of the 400 bankers in the region, excluding Japan.
Sources familiar with the matter revealed that over 40 individuals in Hong Kong and mainland China are projected to be affected by the forthcoming round of layoffs. However, the precise timing and scale of the cuts may be subject to change, as noted by a media representative for the New York-based bank, who declined to provide further commentary on the matter.
These job reductions represent the most substantial downsizing effort in years for Morgan Stanley in China, which stands as its largest market in the Asia-Pacific region. The decision comes amid challenges faced by the world's second-largest economy, including a prolonged real estate crisis and persistent uncertainties regarding economic growth prospects.
In its recent financial report, Morgan Stanley disclosed a 12 percent decline in net revenue from Asia, totaling USD1.74 billion in the first quarter compared to the previous year. Despite this regional setback, the company's global results exceeded expectations.
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