The reduction in staff is a direct response to a decrease in deal-making activities in Asia, which could be seen as a cost optimization strategy in challenging market conditions. While this may have a short-term negative impact on morale and could be viewed negatively by the market, it also indicates HSBC's proactive stance in managing expenses and aligning its workforce with current business needs. The long-term effects will depend on how well HSBC can capitalize on this restructuring to improve efficiency and adapt to market demands.