(Reuters) -Morgan Stanley is considering a 7% cut in its Asia-Pacific investment banking workforce, or about 40 jobs, according to a source with direct knowledge of the matter.
The cuts would mainly impact the investment banking and capital markets business in the region, not including Japan.
A Morgan Stanley (NYSE:MS) spokesperson declined to comment.
The job cuts are part of a global reduction in light of market conditions and to reduce expenses, the source said. The person declined to be identified because the information was not public.
News of the job cuts was first reported by Bloomberg News on Tuesday.
The bank was planning to reduce about 3,000 jobs globally in the second quarter, Reuters reported on May 1 in its second round of job cuts in six months.
Slow dealmaking and a tough economic environment prompted the investment bank to look at its staffing, a source said at the time.
Morgan Stanley had more than 82,000 employees at the end of March, so cutting 3,000 jobs would represent a reduction in staff of nearly 4%.
Global dealmaking has slowed down dramatically. Corporate buyout activity plunged to its lowest level in a decade in the first quarter of 2023.
In Asia, the value of deals involving the region's companies totalled $176 billion in the first quarter of 2023, 34% less than a year earlier and the lowest level since 2013, Refinitiv data shows.
Capital markets activity across the region has also slowed sharply. The outlook for Hong Kong initial public offerings (IPO) looks weak for the rest of the year, according to advisors.