Australia's largest investment bank, Macquarie Group Ltd., announced recently that it plans to eliminate approximately 10 percent of its investment banking unit in Asia, sources with knowledge of the situation told Bloomberg.
According to the news source, Macquarie is slashing mostly vice presidents and some junior finance jobs, but will continue to maintain a presence in 14 Asian countries.
On February 7, Macquarie announced that profit for the year ending March 31 will decline 25 percent due to struggling advisory fees, the news source reported.
Macquarie is hardly the first to make major cuts in its investment banking unit, as Bank of America and Nomura Holdings have each eliminated such positions in Asia due to the ongoing credit crisis in Europe, Bloomberg reported.
Additionally, Australia & New Zealand Banking Group Ltd., Australia's third-largest bank, has announced plans to cut approximately 1,000 domestic jobs, which is roughly the equivalent of 4 percent of its local workforce. The Wall Street Journal reports the European crisis and the lingering economic issues in the U.S. are the major reasons behind the decision.