Investment banking layoffs rise in Asia due to China challenges

Job cuts are anticipated to rise at Western investment banks in Asia due to increased revenue pressures and market instability in China, despite potential deal growth in Japan and India, according to industry insiders interviewed by Reuters. The reduction in staff, which started in late 2023 in China and Hong Kong, is expected to accelerate, with Lazard closing its Beijing office and Rothschild disbanding its Shanghai team. Bank of America also announced significant layoffs in the region. The downturn is attributed to China’s economic challenges, including stock market lows and a tepid post-pandemic recovery, which have dampened investor interest and corporate demand.