SYDNEY, Jan 9 (Reuters) - Deutsche Bank and Morgan Stanley fired analysts and brokers at their Australian operations on Monday as part of global job cuts, two sources with direct knowledge said.
The sources declined to be named as they are not authorised to speak to the media. The Australian Financial Review on its website said Deutsche Bank has cut around 10 staff and Morgan Stanley about seven.
Large banks across the world have outlined plans to cut more than 125,000 jobs this year, according to a Reuters tally. Australia, which has seen strong deal flows in the last two years due to a resources boom has so far been relatively immune to job cuts.
A Deutsche Bank spokeswoman in Sydney declined comment on the cuts but referred to the bank’s statement in October about 500 job cuts outside Germany.
A representative for Morgan Stanley in Sydney referred to the bank’s announcement in December about 1,600 job cuts across the globe.
The job cuts come as banks see their profitability sink amid the weak global economy and European debt crisis.
Clients are holding back on trading and dealmaking activity until markets become less volatile. At the same time, the value of securities banks hold for investments, clients or market-making purposes has declined, further hitting the bottom-line.