HSBC slashes 1,100 jobs

Europe's largest bank by market value, HSBC, is cutting 1,100 people from its investment banking operation worldwide with largest cut coming from Britain because of market conditions, the economic environment and its cautious outlook for next year.

The job cuts, which include both front and back office operations will comprise 650 full time employees and 450 temporary, or contractor, positions which works out to 4 per cent of its global banking and market division's unit.

Out of the 3,35,000 it employs globally, 100 cuts will come from Hong Kong, 500 from Britain and the rest from the US and European offices.
The bank has written down losses of $18.7 billion since the start of the global credit crunch last year.

HSBC has been hard hit by the US subprime mortgage crisis which saw it taking a hit of $14 billion from asset writedowns and bad debts in the US home loan market.

Its net income was down for the first six months of 2008 by 29 per cent to $7.7 billion, or 65 cents a share, compared with $10.9 billion, or 95 cents a share, in the first half of 2007. The bank has written down losses of $18.7 billion since the start of the global credit crunch last year.