HSBC has laid off around 40 investment bankers in Hong Kong, according to a source with direct knowledge of the matter, as part of a global restructuring exercise at the Asia-focused lender to cut costs.
The job cuts in its regional hub Hong Kong started on Monday (Feb 17), said the source and another source with knowledge of the matter, and comes ahead of the London-headquartered bank releasing its full-year results on Wednesday.
At least four managing directors were let go, with three of them based in Hong Kong and one in Singapore, said one of the sources, who declined to be named as the job cuts at the bank were not public.
HSBC declined to comment on the latest round of job cuts in Hong Kong. IFR first reported the layoffs on Monday.
Hong Kong-listed shares of HSBC were up 1.7 per cent on Tuesday, underperforming a 2.1 per cent gain in the benchmark Hang Seng index. The shares hit an 11½ year high earlier on Tuesday.
The investment banking job cuts also come after HSBC last month announced plans to wind down its mergers and acquisitions and some equities businesses in Europe and the Americas in a bid to boost returns.
HSBC’s latest restructuring is being led by its CEO Georges Elhedery, who took the helm in September. He has been taking steps to boost returns and tighten its focus on Asia, where it earns the bulk of its profit.
As part of the overhaul, the bank said in October that it would combine some of its commercial and investment banking businesses and installed a new leadership structure.
It also planned to carve up its operations into four business lines, namely UK, Hong Kong, corporate and institutional banking, and wealth banking. REUTERS
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