HSBC has laid off approximately 40 investment bankers in Hong Kong as part of a global cost-cutting restructuring effort. The job cuts at its Hong Kong hub commenced on Monday and preceded the bank's upcoming release of its full-year results on Wednesday.
Among those affected were at least four managing directors, three in Hong Kong and one in Singapore. The impacted investment banking sectors include consumer, resources, energy, and mergers and acquisitions, each seeing around five bankers being let go. Additionally, four dealmakers were made redundant in the technology, media, telecommunications, and financial institutions departments, with a couple of cuts in the healthcare and Hong Kong coverage teams.
HSBC declined to comment on the recent job cuts in Hong Kong, as initially reported by IFR on Monday. Despite these layoffs, Hong Kong-listed shares of HSBC rose by 1.7% on Tuesday, slightly underperforming the benchmark Hang Seng index's 2.1% gain, reaching an 11-1/2 year high.
These investment banking job reductions follow HSBC's previous announcement last month about streamlining its mergers and acquisitions and equities operations in Europe and the Americas to enhance returns. The current restructuring efforts are spearheaded by the bank's CEO Georges Elhedery, who has been focused on increasing returns and emphasizing the bank's Asian market, the main source of its profits.
In October, HSBC disclosed plans to integrate some of its commercial and investment banking divisions and implement a new leadership structure. The bank also outlined a reorganization into four business segments: UK, Hong Kong, corporate and institutional banking, and wealth banking.