Job cuts ARE happening in Asia too

By and large Asia has been spared deep cuts in the latest round of investment banking redudancies, and some firms have even suggested they will continue to hire there, while firing in Western locations.

If you're viewing Asia as a panacea to any career problems, you'd be mistaken, though. There are more signs that global banks are sharpening the axe in Asia, albeit not on the same scale as other markets.

The bulk of the 60,000 job cuts already announced by the top 50 global banks will happen outside Asia, but that doesn't mean the region is immune. In Hong Kong banks are already trimming over and above their usual performance-related reductions, although only two to three people are typically laid off each time.

Goldman Sachs, UBS, Credit Suisse, Deutsche Bank and Barclays are among the firms to have let people go in Hong Kong, with middle and back offices most affected, according to three senior recruiters, all of whom asked to remain anonymous.

Another headhunter, Hubert Tam, managing partner, Sirius Partners, adds: "Banks don't usually proactively slash jobs at this time of year, but because the economy and market have not performed as well as expected, jobs in Hong Kong have not been spared."

And he isn't ruling out continued layoffs in 2011. "As it gets closer to the end of the year, we may see even more candidates being let go as firms switch focus to certain business areas in 2012."

Tam reckons structured-sales roles are particularly vulnerable because banks' balance sheets can't be leveraged as much as before. Matthew Hill, managing director Hong Kong, Ambition, adds: "I think areas which are non-fee generating will bear most of the brunt - these are typically the lower-level back-office jobs."

Feel the fear and ask for less money

These uncertain times mean job seekers are being less demanding. Hill says: "There has been a mindset change for some. I know of a candidate in an investment bank who currently earns US$180k, but who is asking for US$100k in his next role. Candidates have awareness that the markets are changing and are looking for organisations with the right plan/upside for the next two to three years. "

East still beats West

Recruiters, however, remain optimistic about Asia's longer-term employment market. "Margins have been quite good in Asia compared with the rest of the world, so I don't think firms are going rip out all the infrastructure they have spent the last few years building up. Asia was the first to bounce back after the GFC, so it's likely to be the region which will rebound quickest if there is a global recession," says Hill.

Another factor in Asia's favour is that talent is sometimes cheaper here. Candidates in support functions cost less than in Europe and the US, so firms are more likely to retain profitability with only modest cuts, says Hill.