Goldman Sachs Group Inc. and Citigroup Inc. are starting to cut another 35 investment-banking jobs across Asia this week, after revenue from stock sales and mergers slumped further in the second quarter, people familiar with the matter said.

Goldman made a fresh round of reductions affecting about 15 dealmakers, including nine from equity capital markets, the people said, asking not to be identified because the matter is private. Citigroup may eliminate more than 20 jobs, mostly at junior levels, one of the people said.

Wall Street’s investment banks continue to face a muted environment for dealmaking as macro-economic concerns and tumultuous markets constrain mergers and acquisitions. Equity offerings in Asia-Pacific slumped by almost a third in the second quarter from the first three months, while announced M&A deals fell 21%, data compiled by Bloomberg show.

Media representatives at Goldman and Citigroup declined to comment. The final number of jobs to be made redundant hasn’t been decided, the people said.

China Cuts

While many banks are eliminating jobs globally, the cuts in Asia — and China in particular — are the biggest in years. China’s economy is struggling to get back on its feet after years of Covid restrictions and crackdowns on everything from financial technology to private education and real estate. More rounds of cuts are being eyed at the biggest banks, according to interviews with senior executives.

Morgan Stanley last month made another round of reductions affecting 7% of its Asia-Pacific investment bankers, with more than 40 jobs at risk. China-focused bankers are taking the biggest hit as deteriorating relations with the US and weaker economic growth curb dealmaking.

Read more: Goldman Planning Another Round of Job Cuts Amid Chill in Banking

Globally, Goldman is working on its third round of staff cuts in under a year. It eliminated hundreds of jobs in September, followed by another 3,200 at the start of this year. The moves this time are expected to impact fewer than 250 people, and will include more senior employees, Bloomberg News reported.

Citigroup started cutting hundreds of jobs across the company earlier this year, and is planning to shed 30 investment-banking jobs and 20 more at its corporate bank in London, people familiar said last week. The bank has begun to see a pickup in investment-grade debt, equity underwriting and merger activity, Tyler Dickson, co-head of banking, capital markets and advisory unit, said in a Bloomberg Television interview last month.

Citigroup’s Chief Financial Officer Mark Mason said at a conference Wednesday that the firm’s recent job cuts will cause expenses to climb by as much as $400 million this quarter compared with the first three months of the year. He’s expecting severance costs tied to the departure of 1,600 employees in the second quarter.

--With assistance from Sarah Zheng.