Macquarie Group Limited (ASX:MQG) is reportedly cutting jobs in its Asia branches. Bloomberg has been reporting that multiple sources involved with the matter confirm the layoff decision. About 80 to 90 jobs will be cut from the Asia divisions of the investment bank. The cuts will occur in Hong Kong, Singapore, Korea, India and Japan. Employees in Australia will not be affected. Bloomberg is also reporting that some staff in Japan has already been told to leave at the end of the week. Fiona McDonald, the Hong Kong based spokeswoman for Macquarie was not available for comment. Jeremy Wernert, who was named the head of the regional Macquarie Capital investment banking unit in Asia, will also be stepping down. Mr. Wernert was also unavailable for comment.
The layoffs follow decreased revenue from the advisory and capital markets divisions after the braches failed to acquire new deals. Macquarie Group CEO Nicholas Moore has also laid out a new strategy of moving the company towards more sustainable ventures, including leasing, lending and fund management. Mr. Moore’s aim is to rely less on trading and advisory for profits. The No. 1 Australian investment bank is also attempting to increase its principal investment business, including providing funding to clients who are making acquisitions or investing in companies preparing to go public. The former Asia regional CEO Alex Harvey was named global head of principal investments last year.
Shares of Macquarie Group are up 80c, or 1.05 per cent, at $77.22 per share around noon on Tuesday. MQG has advanced 33.25 per cent in the last 12 months and enjoys exceptional buying pressure since January 2015.