HSBC cuts 1,100 banking and market jobs in Europe, US

26 September 2008

Mumbai: HSBC Holdings, Europe's biggest bank by market capitalisation, has cut 1,100 jobs, or four per cent of its global workforce, in its banking and markets operations amid an ongoing global financial meltdown.

The job cuts will affect about 500 employees, including both front and back office staff and permanent and temporary workers based in London, with the remainder in Europe and the US, the Financial Times said in a report.

HSBC, one of the first global banks to be affected by the defaults on risky US home loans and the consequent credit-market crisis, said in February 2007 that loan-loss provisions would increase.

In September last year, HSBC announced it was shutting down its Decision One subprime mortgage unit and eliminating 750 jobs.

The bank also trimmed around 100 jobs in Asia. HSBC has 335,000 employees worldwide.

HSBC, however, emerged in better shape than many other banks as the credit-market meltdown unfolded.