(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.<\/p>\n\n\n\n
The cuts would mainly impact the investment banking and capital markets business in the region, not including Japan.<\/p>\n\n\n\n
A\u00a0Morgan Stanley\u00a0(NYSE:MS) spokesperson declined to comment.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
News of the job cuts was first reported by Bloomberg News on Tuesday.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Slow dealmaking and a tough economic environment prompted the investment bank to look at its staffing, a source said at the time.<\/p>\n\n\n\n
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%.<\/p>\n\n\n\n
Global dealmaking has slowed down dramatically. Corporate buyout activity plunged to its lowest level in a decade in the first quarter of 2023.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n