Goldman cuts at least 25 bankers in Asia as China deals swoon

(Sept 20): Goldman Sachs Group Inc has started axing at least 25 bankers in Asia as a drought in dealmaking has prompted cuts across sectors, people familiar with the matter said.

The cuts span across its equity capital markets, health care and telecommunication, media and technology teams in Asia, the people said, asking not to be identified because the matter is confidential. The majority of the reductions are affecting junior level bankers involved in deals in Greater China, the people said.

“Every year globally we conduct a strategic assessment of our resources and calibrate headcount to the current operating environment,” a spokesman said in an email, without commenting on the extent of cuts. “We continue to remain flexible while executing against our strategic growth priorities.”

The reductions come after Goldman went on an unprecedented hiring spree in mainland China and Hong Kong last year as the world’s second-biggest economy opened its financial market fully to foreign brokerages and asset managers. Dealmaking in China then ground to a near halt this year as Covid lockdowns and rising political tension sapped growth in the once booming economy.

The Wall Street titan has plans for its biggest round of job cuts since the start of the pandemic, seeking to eliminate several hundred roles starting this month, people with knowledge of the matter said earlier. While the total number is lower than some previous rounds, the reductions are a resumption of an annual culling cycle that the New York-based bank had largely paused during the Covid outbreak.