HSBC's job cuts: Monday Asia, Thursday US, Friday UK
HSBC is cutting jobs as it cuts $1.5bn of costs and closes its ECM and M&A businesses in Europe and the US. More information on the sorts of jobs being cut will become available tomorrow when the bank announces its fourth quarter results. For the moment, though, it's clear that the cuts aren't limited to the businesses being wound down.
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HSBC isn't commenting, but senior sources at the bank say the job cuts are following a timeline which involved Asia on Monday before coming to the US on Thursday and the UK on Friday.
"It's huge, at least in the hundreds," said the senior figure. Reuters reported that HSBC laid off "40 dealmakers" in Hong Kong yesterday. Sources say that emails sent to Asian colleagues today bounced back and that the cuts there included MDs and VPs.
In the US, it's understood that bankers are being asked to work from home on Thursday so that the cuts can be made with minimal fuss. In the UK, the senior figure said Friday will be "carnage."
Individuals who survive this week will, however, get some respite. The next wave of cuts is expected to come towards the middle of the year. The bank has prepared three lists of people: those going in this first round; those going towards the middle of the year; those staying forever.
While senior people are being cut, juniors may be safe. In London at least, there are suggestions that the analyst class will be kept on, paid bonuses, and redeployed. The bank doesn't want to ruin its reputation with graduates.
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