British bank Standard Chartered is cutting 10 percent of its investment banking staff starting this week. As Tara Joseph reports, the redundancies are part of an overall shrinking finance sector in Asia.
Another round of job losses in banking. Sources telling reuters that Standard Chartered - the British giant with an Asia focus - is cutting 10 percent of its investment banking staff starting this week. Part of an aggressive drive to slash costs. Reuters has been told that execs are wielding the axe to remove job duplication and push forward with investments in technology, As business in Asia continues to dry up. (SOUNDBITE) (English) TARA JOSEPH, REUTERS REPORTER, SAYING: "This bank has been fighting an uphill battle. Asia used to be a haven for investment bankers with the lure of double digit profits. But business has shrunk in the past few years. The once-booming IPO market has become less profitable and overcrowded. And the rise of financial technology and new players from Mainland China are squeezing the sector." This latest round of redundancies follows an announcement last year that 15-thousand positions would be axed at standard Chartered due to sinking profits. Job losses are also part of a promised overhaul Simon Cooper, the company's head of investment banking, who joined from HSBC in April. Stanchart is just one of several big names in finance that are trimming staff in Asia. In september, Goldman Sachs axed nearly 30 percent of its investment banking jobs in the region. Bank of America has also laid off more than 20 senior investment bankers in the past few months.