Macquarie Group has initiated a second round of global staff reductions, according to sources familiar with the matter.
Over the past two weeks, staff reductions were made in the firm’s Sydney, London and New York offices.
Sources said that Macquarie Capital Advisors, Macquarie’s advisory arm, experienced the largest staff reductions, while Macquarie Capital Funds, the funds management division of Macquarie Capital, was less affected. The reductions in Macquarie Capital Advisors were widespread across different teams and different seniority levels, the sources added.
Macquarie Capital, formerly the investment banking division of Macquarie, manages 36 listed and unlisted specialist funds and pursues investment banking activities worldwide.
Additionally, there were staff reductions in the Macquarie Funds Group – a division that was created last year to house Macquarie’s funds and funds-based structured product businesses all under one roof. That division, which is separate from Macquarie Capital Funds, was created in June 2008 and is headed by Shemara Wikramanayake, formerly the head of Macquarie Capital Funds in North America.
Sources said that the staff reductions within the Macquarie Funds Group were made mostly in support staff and sales teams, while investment professionals were less affected.
Like many global investment banks faced with slowing dealflow, Macquarie has been scaling back its work force to match business demands. The firm, which does not have a history of large global staff reductions, most recently made staff reductions in November after it announced after posting a 43 percent decline in its 2008 half year profit.
Macquarie eliminated 1,000 jobs globally between 30 September 2008 and 31 January 2009, according to a recent operational briefing. It is unclear how large the staff reductions will be this time.
The firm will next give updated staff numbers when it reports its results for the year ended 31 March 2009.