Macquarie to cut half its Asia investment-banking workforce

Macquarie Group proposes to slash investment banking jobs in Asia in the wake of a drop in revenue from the advisory and capital markets unit amid a slump in deals.

Australia's leading investment bank plans to cut about half of its investment-banking workforce in Asia and some 90 jobs will be eliminated, Bloomberg reported.

Jeremy Wernert, who was named head of the group's investment-banking unit less than a year ago, is leaving, the report said.

Hajir Naghdy, who runs Middle East investment banking, will now head Macquarie Capital.

The cuts, to be described to employees on 31 March, will occur across Hong Kong, Singapore, Korea, India and Japan, but will exclude Australia, the news agency added.

Macquarie shares finished 0.33% higher on Tuesday, after climbing 1.1% in intra-day trade, valuing the firm at A$25.68bn (£13.2bn, €18.2bn, $19.5bn). The stock has gained some 31% so far this year.

T S Lim, a Sydney-based analyst at Bell Potter Securities told Bloomberg: "Asian investment banking is very competitive and Macquarie's move may be reflective of its general strategy

"It's about reducing headcount in Asia and concentrating on successful markets such as Australia and North America. Also it goes with the trend of investing in non-cyclical businesses."

Macquarie's decision follows similar moves by Citigroup, CIMB Group Holdings and Nomura Holdings, who have cut jobs in Asia this year as higher capital requirements and tougher regulations have mounted pressure on financial firms.