Bank Of America Layoffs 20 Bankers Amid Stock Market Blues In Asia: Report

Bank Of America Corporation BAC reportedly declared the termination of around 20 bankers in Asia.

Most of the impacted bankers are situated in Hong Kong, Reuters reported, referring to sources familiar with the situation.

Additional reductions were implemented in various Asian markets as well, the report added.

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The layoffs coincide with recent lows in China and Hong Kong’s stock markets in the past few weeks, adversely affecting the deal prospects for investment banks, including the Wall Street firm.

The company recently reported mixed fourth-quarter financial results at the end of last week and saw its quarterly revenue fall 10% year-over-year. 

CEO Brian Moynihan shared his outlook for 2024 following the print.

Also See: Citigroup To Cut 20,000 Jobs In Major Strategic Overhaul, Cites ‘Disappointing’ Q4

In a CNBC interview at the World Economic Forum in Davos, Switzerland, Moynihan said businesses have become more cautious amid higher interest rates and an anticipated economic slowdown, but he predicted that as the financial environment stabilizes, demand for commercial loans will recover. 

The Bank of America CEO also downplayed the risk of a crash in the commercial real estate market and explained that a decline in demand for corporate office space following the pandemic-fueled remote work movement is a “slow burn” that the system can handle in an orderly fashion.

Price Action: BAC shares are trading higher by 0.28% to $32.64 premarket on the last check Tuesday.

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