Julius Baer wealth management job cuts will lead to lay-offs in Singapore and Hong Kong

Swiss private banking group Julius Baer has recently announced a massive job cut of 1,000 jobs after purchasing of Bank of America Merrill Lynch's international wealth management business.[1] According to efinancialcareers.com, this will lead to lay-offs in Singapore and Hong Kong and under performing Merrill bankers in Asia will especially be vulnerable:

The deal is expected to close in Q1 next year and the cuts will happen in stages after that. The Merrill wealth business outside of the US and Japan, which the Swiss firm has agreed to buy, made a first-half loss of $30.4m. Baer is now seeking to cut costs by reducing the post-merger combined headcount of about 5,700. 

Merrill Lynch has about 100 financial advisors – its term for relationship managers – in Singapore and another 150 in Hong Kong, says Rahul Sen, executive director, Gibson Tullberg. Only about 28 of them in Singapore and another 75 in Hong Kong are generating $1m or more in annual revenue – Baer’s minimum threshold – leaving nearly 150 others at risk, he adds. “We do see changes taking place within the Merrill lot going over to Julius Baer as they won’t all make the cut.”[2]

With no improvement in the world economy in sight and very likely recession due to debt crisis in major economies of the world, big financial institutions are announcing job cuts in banking and finance services one after another.[3]

[1] - Julius Baer to cut 1,000 jobs after Merrill deal
[2] - Nearly 150 Merrill private bankers are potentially in peril in Asia as Julius Baer plans 1,000 post-merger global cuts
[3] - More job cuts are announced in Asia in banking and finance services