## Morgan Stanley to Cut Investment Banking Jobs in Asia-Pacific
Morgan Stanley is planning to cut around 50 investment banking jobs in the Asia-Pacific region, with the majority of the reductions expected to take place in Hong Kong and mainland China. This represents approximately 13% of the bank's 400 bankers in the region, excluding Japan.
The cuts come amidst a challenging economic climate in China, with the world's second-largest economy facing a prolonged real estate crisis and concerns over growth. This has led to a decline in revenue for Morgan Stanley in Asia, with net revenue falling by 12% in the first quarter of 2023 compared to the previous year.
The bank had initially hoped to avoid layoffs by offering historically low bonuses to encourage voluntary departures. However, with only a few bankers leaving, Morgan Stanley has decided to implement deeper cuts.
This news follows similar job cuts announced by other global financial firms in Asia, including HSBC, UBS, and Bank of America. The industry is facing a slowdown in deal activity and deteriorating US-China relations, leading to a reduction in investment banking staff.
Despite the cuts, Morgan Stanley remains committed to its onshore China business. The bank recently received approval for principal trading and research licenses, and has made several senior hires in the region.