Goldman Sachs Group Inc is laying off about 30 percent of its investment banking employees in Asia, excluding Japan, amid slowing operations in the region, according to a recently published report by Wall Street Journal citing sources close to the matter.
The latest move will affect employees working on mergers and acquisitions as well as on equity and debt capital markets deals. The bank will be left with nearly 200 bankers in Asia following the cuts, which will likely take place in China, Hong Kong and Singapore, according to the report.
The company didn’t responded to the news so far.
Goldman Sachs has been hit by a dull environment for deals in Asia. Its investment banking revenue plummeted 11 percent to $1.79 billion in the second quarter. The overall value of M&A deals in Asia has declined to $572.9 billion so far in 2016, as compared to $745.7 billion in the same period last year, according to estimates from Thomson Reuters.
The company reported in July that it was embarking a cost-cutting program that would result in annual savings of about $700 million amid a challenging backdrop for revenue.
Goldman is facing a harsh environment as the region’s economies and markets were unable to deliver sustained growth following the 2008 financial crisis. The bank’s performance was also hurt by local competitors. Several other European rivals have also revealed plans to limit their operations in the Asia-Pacific region. For instance, Barclays announced in January that it would slash 1,000 jobs in its investment bank operations across the globe, and most of them will happen in Asia.
Shares of Goldman Sachs fell 1.72 percent to $165.13 in the last trading session. The 52-week range of the stock is $138.20-$199.90. The company’s market cap is $65.80 billion.