LONDON: HSBC, the worlds second largest bank by market value, has begun to shed corporate finance and other investment banking staff as part of a restructuring.
In the corporate finance and advisory area, HSBC is to cut 30 staff, according to sources close to the bank. It employs about 200 people in London in corporate finance.
An HSBC spokesman confirmed that the bank had begun consultations this week with 30 employees likely to be affected by the reorganisation.
The spokesman said the bank was also in consultation with five employees in project and export finance and 10 in emerging markets foreign exchange.
He said the bank was transferring foreign exchange trading activities in emerging market currencies to the relevant region or country and would scale back in currencies that might eventually become part of the euro zone.
The bank is also in the process of shedding jobs in equities, including some senior staff, according to sources close to the bank.
HSBC is bringing together its equities business with fixed-income and currencies and reviewing its equities trading and research activities targeted at fund managers to concentrate on its large list of major corporate clients.
The revamp is part of a wide-ranging review of investment banking after the appointment in April of Stuart Gulliver, formerly HSBCs head of global markets, and Morgan Stanley veteran John Studzinski as co-heads of corporate and investment banking.
The bank has already said the review may mean cuts among the 1,450 equities staff it employs globally. It also plans to hire equities and corporate finance staff at a senior level.
HSBC has had a low profile in investment banking over the past few years and Gulliver and Studzinski aim to revitalise the division. They want to capitalise on its corporate client base to get more profitable corporate finance advisory and other investment business.
The bank is also developing a new advertising and marketing campaign for the corporate investment banking and markets division, which is expected to be finalised soon, said sources close to the bank. Reuters