Bank of America cuts 20 in Asia, China investment bankers affected most - sources

FILE PHOTO: A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. REUTERS/Carlo Allegri/File Photo

By Kane Wu and Selena Li

HONG KONG (Reuters) -Bank of America on Tuesday announced layoffs of around 20 bankers in Asia, said three sources with knowledge of the matter, as plunging markets in China and Hong Kong weighed on deal prospects.

The majority of the bankers affected are based in Hong Kong who worked on China deals, according to two of the sources and a fourth person with knowledge of the matter.

Some cuts were also made in other Asian markets, the sources said.

The Wall Street bank has become the first large global bank to downsize its regional investment banking operation in 2024, after a slew of layoffs across the industry in 2023 as weaker China recovery failed to impress with rising geopolitical tension drove away foreign investors.

All of the sources declined to be named as the information is confidential.

A Bank of America spokesperson declined to comment.

The layoffs come as China and Hong Kong’s stock markets touched the lowest in years in recent weeks, which took its toll on deal prospects for investment banks including the Wall Street firm, sources said.

The gloomy outlook contrasts with that of the U.S. market, where the bank reported a pickup in dealmaking in the fourth quarter, which pushed up investment banking fees by 7% to $1.1 billion.

(Reporting by Selena Li and Kane Wu in Hong Kong, Editing by Louise Heavens)