BofA layoffs hit Hong Kong, Citi slashes bonuses by 20pc

Bank of America yesterday announced layoffs of around 20 bankers in Asia, mostly in Hong Kong while Citigroup reportedly cut bonuses for senior bankers by up to 20 percent this year.

The majority of the bankers affected are based in Hong Kong who worked on China deals, according to two of the sources and a fourth person with knowledge of the matter.

Some cuts were also made in other Asian markets, the sources said.

The Wall Street bank has become the first large global bank to downsize its regional investment banking operation in 2024, after a slew of layoffs across the industry in 2023 as a weaker China recovery failed to impress and rising geopolitical tension drove away foreign investors.

The layoffs come as China and Hong Kong's stock markets touched the lowest in years in recent weeks, which took its toll on deal prospects for investment banks including the Wall Street firm, sources said.

The gloomy outlook contrasts with that of the US market, where the bank reported a pickup in dealmaking in the fourth quarter, which pushed up investment banking fees by 7 percent to US$1.1 billion (HK$8.58 billion).

This came as Financial News London reported that Citigroup has skewed payments towards high-performing staff as it continues to overhaul its business.