HSBC starts cutting jobs in London office - report

(Sharecast News) - HSBC Holdings has started cutting jobs in London, it was reported on Wednesday, as the blue chip looks to wind down its investment banking offering outside of Asia. New chief executive George Elhedery, who took over from Noel Quinn in September, is radically overhauling the bank's global offering.

As well as cutting $1.5bn from the annual cost base by the end of next year, Elhedery wants London-listed HSBC to refocus on Asia, its most important market. As part of that, the lender is cutting its investment banking and equity capital markets offering in the west. Investment banking accounts for around 6% of HSBC's total revenues.

According to Financial News, citing unnamed people familiar with the matter, the bank has now started informing staff in its London office of job cuts.

The newspaper said that while discussions are ongoing, bankers expect between 200 and 300 front line roles in the London investment bank to go. Further job cuts are also likely in support functions such as legal and compliance.

Some bankers, however, could be offered new positions in the Middle East or Asia, while others will be given the opportunity to stay on temporarily while existing deals are closed out.

HSBC decline to comment on the number of roles at risk.

It told Financial News: "We remain committed to supporting clients globally with our best-in-class debt financing capabilities, leveraging our expertise in debt capital markets and leveraged acquisition finance, complemented by corporate risk solutions and strategic equity and financing, and M&A and ECM in the Middle East and Asia."