Singapore financial sector may cut hiring amid volatile markets, global bank layoffs

[SINGAPORE] Mercurial stock markets, coupled with growing concerns that the US economy could be headed for a recession, are making banks in Singapore more cautious about hiring, recruiters said.

Athreya HD, partner in financial services consulting at Forvis Mazars, told The Business Times: “In Singapore’s context as a key financial hub, institutions are adopting a more prudent hiring strategy, focusing on critical roles essential to their core operations.” Together with “efforts to optimise workforce structures, driven by digital transformation, (this) could lead to a reduction in overall headcount”, he added.

Recruiters suggested that recent reports of big US banks laying off staff in their home market could ripple through to affect their headcount in Singapore.

Charnele Tan, assistant director of the banking and finance division at The GMP Group, said: “A looming recession, tariffs and trade uncertainties could lead to budget cuts or restructuring within American banks operating in Singapore. They have reduced their workforce across the Asia-Pacific region, which has resulted in job cuts in places like Singapore as part of the regional strategy.”

Morgan Stanley is the latest bank said to be slashing jobs. Bloomberg reported that the US investment bank is planning to cut 2,000 employees this month to contain costs. This follows its co-president Dan Simkowitz’s announcement on Tuesday (Mar 18) that merger and acquisition announcements and new equity issuance are “on pause”. The company is, however, still “adding real headcount” at its senior levels of investment banking.