HSBC is to make hundreds of bankers redundant this week in London and other financial centres such as Hong Kong and the US, it emerged yesterday, as it struggles to get back to bumper profits in the current troubled economic climate.
City A.M. understands that staff in HSBC’s City offices were told about the cuts on Wednesday night in the first wave of a brutal programme to reduce headcount.
About 10 per cent of HSBC's total workforce is to go by 2013 in a cull announced by chief executive Stuart Gulliver in May to save $3.5bn (£2.2bn) in annual costs.
The investment bank, which employs 20,000 worldwide, is likely to see about 2,000 jobs lost, though after HSBC’s third-quarter results this week showed a 36 per cent drop in profits on lower investment banking activity, the division is likely to be downsized to reflect the lower levels of work.
The jobs cull will target London and four other financial hubs, with 3,000 positions to go in Hong Kong and others in the US, Brazil, Canada and Mexico. HSBC has also said it will hire new staff in Asia to grow there.