HSBC cutting banking and markets jobs

HSBC Holdings, Europe's biggest bank, said yesterday it was cutting 1,100 jobs in its global banking and markets operation, or four per cent of the unit's total, as it weathers the global financial crisis.

"We're doing it because of market conditions and the economic environment, and our cautious outlook for next year," Hong Kong-based spokesman Gareth Hewett told Reuters.

The jobs are in front and back office operations. About half of the positions affected are in the UK, where HSBC has its headquarters, and 100 of the positions are in Hong Kong, where the bank's large Asian operations are based.

Globally, HSBC employs about 335,000 people.

"Markets continue to be challenging and difficult but our strategy leaves us well positioned for the next wave of global growth, when it comes," Mr Hewett said.

The financial services sector is haemorrhaging jobs amid the worst financial crisis since the Great Depression, which has seen unprecedented change on Wall Street and the demise of venerable firms such as Bear Stearns and Lehman Brothers.

HSBC was one of the first banks to feel the sting of the subprime mortgage crisis in the US and has booked write-downs or losses of $18.7 billion since the start of the global credit crunch last year.

In August, the bank posted a 28 per cent fall in first-half pre-tax profit to $10.2 billion as it took a $14 billion hit from bad debts on US home loans and asset writedowns.

In its global banking and markets business, pre-tax profit fell 35 per cent in the first half to $2.1 billion, although that was a 37 per cent increase from the second half of last year. "There is no change in strategy at Global Banking and Markets, which is to be a leading emerging markets-led and financing-focussed wholesale bank," Mr Hewett said.

HSBC's Hong Kong-listed shares fell 0.08 per cent yesterday morning, outperforming a broader market that was down 2.02 per cent.

HSBC Holdings PLC (HSBC Holdings) is a United Kingdom-based banking and financial services organiation. Its international network comprises over 10,000 properties in 83 countries and territories in Europe; Hong Kong; rest of Asia-Pacific, including the Middle East and Africa; North America and Latin America.