HONG KONG, Feb 9 Reuters Job cuts at western investment banks in Asia are expected to increase this year as revenue pressures rise due to deepening economic and market turmoil in China, even as deal prospects brighten in Japan and India, headhunters and bankers said.

A new round of staff cuts that began in late 2023 on the Chinese mainland and Hong Kong, key regional investment banking hubs, will gather pace in the coming months, they added.

U.S. boutique bank Lazard announced internally last month it would close its Beijing office, resulting in some employees being laid off, while others were to be relocated to Hong Kong, two people with knowledge of the move said.

Its European peer Rothschild disbanded its Shanghaibased team in the fourth quarter, two separate people with knowledge of the matter said. Bank of America last month announced job cuts of more than 20 bankers in Asia.

The sources declined to be named as they are not authorised to speak to the media.

Lazard declined to comment. Rothschild did not respond to Reuters requests for comment on the status of Shanghai.

China39;s stock markets hovering around fiveyear lows and the country39;s weakerthanexpected recovery from the pandemic have deepened investor worries and soured companies39; domestic demand outlook. Geopolitical tensions have also driven foreign investors away.

If the deal flow continues the way it has been in 2023, the market could expect some more cuts, said Sid Sibal, vice president Greater…