It was announced today that HSBC Holdings $HSBA (-3,37%)
has begun cutting jobs in London as the bank looks to reduce its investment banking offering outside Asia.
New chief executive George Elhedery, who took over from Noel Quinn in September, wants to fundamentally reshape the bank's global offering.
Elhedery not only wants to reduce annual costs by USD 1.5 billion by the end of next year, but also refocus the London-listed HSBC on Asia, its most important market. In this context, the lender will reduce 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 begun informing staff in its London office of the job cuts.
The newspaper reports that discussions are still ongoing, but bankers believe that between 200 and 300 jobs will be lost in the London investment bank. Further job cuts are also expected in support functions such as legal and compliance.
However, some bankers 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 finalized.
HSBC declined to comment on the number of jobs at risk.
"We remain committed to supporting clients globally with our world-class debt financing capabilities, leveraging our expertise in debt capital markets and leveraged acquisition finance, complemented by corporate risk and strategic equity and financing solutions, as well as M&A and ECM in the Middle East and Asia."
