HSBC may axe 1,000 jobs in Hong Kong

09 February 2009

Europe's biggest bank by market value, HSBC is reported to mulling another 1,000 job cuts, this time exclusively from its Hong Kong operations, after having axed 550 jobs there last September, adding to the country's recession, which has hit its 6.9 million people.

Unions representing bank workers in Hong Kong, say that the bank is contemplating sacking 1,000 employees of its total workforce strength of 18, 000 in Hong Kong and it plans to protest, what it sees as a mass job cut.

According to the unions, the bank is sacking employees from all departments based on their performance appraisals carried out earlier in the year.
HSBC, had cut 1,100 people from the 3,35,000 it employs globally in October with the cut coming mainly in the investment banking operation worldwide with largest cut coming from Britain because of market conditions, the economic environment and its cautious outlook for this year. (See: HSBC slashes 1,100 jobs)

Out of the 1,000 job cuts 100 cuts came from Hong Kong, 500 from Britain and the rest from the US and European offices and the bank again in November axed 450 jobs in Honk Kong.

Union workers are angry and agitated at Hong Kong being targeted by the banker for its job cuts, as the bank is one of the few global bank that has not been affected badly due to the housing mortgage crisis and it has not reported any losses.

In November, the bank reported a higher than expected third quarter profit, despite $4.3 billion loan write-offs in the US, but a lower pre-tax profit for the nine-month period ended 30 September 2008 compared to the corresponding period in the previous year. (See: HSBC posts higher Q3 profit despite $4.3 billion US loan write-off)