HSBC Axes 100 Equity Jobs
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HSBC will offload around 100 employees in its equities business including research, sales, trading and back-office functions.vMost of the cuts will be made in the bank’s continental European trading floors, according to a report citing anonymous sources. A handful of layoffs will apply to Hong Kong.
The bank could not comment on the matter ahead of scheduled reporting of its annual results for 2019.
HSBC is undergoing a major cost-cutting exercise under interim chief Noel Quinn and was reportedly reviewing its equities business as part of the latest round of cuts which could total 10,000 jobs in Europe. This also follows announcements in August by the bank to layoff more than 4,700 jobs to cut 4 percent of wage costs.
HSBC is expected to redirect its European equities business to focus on its core home market in the U.K., sources added, while retaining the trading hub in Paris to serve continental Europe. As part of Its retreat in the region, the bank will also seek to sell its French retail business and has repeatedly hired Lazard to support the estimated $1.1 billion deal.
Questions & Answers
Q.Which areas of HSBC's equities business will be most affected by these job cuts?
Which areas of HSBC's equities business will be most affected by these job cuts?
Most of the 100 job cuts will apply to the bank’s continental European trading floors. A small number of layoffs will also occur in Hong Kong as part of the overall reduction.
Q.What is the broader context for these job losses at HSBC?
What is the broader context for these job losses at HSBC?
HSBC is conducting a significant cost-cutting exercise under interim chief Noel Quinn. This round of cuts in the equities business is part of a larger plan that could see 10,000 jobs lost in Europe.
Q.How will HSBC's European equities strategy change following these layoffs?
How will HSBC's European equities strategy change following these layoffs?
The bank plans to refocus its European equities business on its main U.K. Market. However, the trading hub in Paris will be kept to continue serving continental Europe.
Q.Is HSBC taking any other steps to reduce its presence in the region?
Is HSBC taking any other steps to reduce its presence in the region?
Yes, as part of its retreat, the bank also intends to sell its French retail business. Lazard has been hired multiple times to assist with this estimated $1.1 billion deal.
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