SINGAPORE: Maybank Kim Eng, the investment banking arm of Malaysian lender Maybank, has cut about five per cent of its Singapore workforce as part of a "comprehensive restructuring" of its operating model.
The job cuts, announced to employees last Friday (Dec 6), come as Maybank Kim Eng relooks some parts of its operations, including its Singapore retail brokerage, regional institutional sales and research, and Hong Kong investment banking and advisory businesses.
It also comes amid a shift in customer preferences and dramatic changes in the investment banking landscape, said Maybank Kim Eng chief executive officer Ami Moris, citing the increasing automation and digitalisation of brokerage offerings as well as regulatory changes.
“Regrettably, this had necessitated a review of our staff strength to an optimum level,” said Ms Moris in a Maybank Kim Eng statement to CNA on Tuesday.
In all, 3 per cent of its total workforce will be affected by the restructuring, said Maybank Kim Eng.
NEW MARKETS AND PRODUCT OFFERINGS
The restructuring of the business lines is needed to help Maybank Kim Eng continue to "maintain sustainable growth and deliver value for its clients" and enhance its competitiveness, it said.
The company plans to capture new markets via new product offerings, align distribution channels and enhance client offerings and connectivity across products, it said.
"The comprehensive restructuring of Maybank Kim Eng’s cost structure and existing operating model will enable Maybank Kim Eng to leverage emerging opportunities in new growth areas," it said.
Ms Moris said that employees affected by the layoffs will receive compensation packages in line "with the law and market practice" as well as outplacement advice and referrals.
“The group appreciates their years of service with Maybank Kim Eng and will provide relevant support to assist them during this transition period," she said.
In January this year, Maybank Kim Eng closed its institutional research business in Hong Kong and China to focus on its core market in ASEAN.
It said on Tuesday that the affected business lines will remain key to its operations and are essential components of the investment bank’s growth aspiration.
“Maybank Kim Eng remains fully committed to providing best-in-class investment banking services and growing its regional presence," it said.