Banking giant HSBC has cut 1,100 jobs in its investment banking division due to turmoil in the financial markets.
The bank revealed that it was forced to reduce the size of its workforce because of tough market conditions and the poor outlook for 2009. Although the cuts will not affect HSBC’s high street operations, 500 jobs are set to go from the bank’s Canary Wharf headquarters in London, including investment bankers and administrative staff.
HSBC has been one of the most resilient banks in weathering the creditcrunch. Half-year profits at HSBC fell by 28% to £5.2 billion lastmonth, as the bank was forced to write off £7 billion of bad debtslinked to the sub-prime mortgages.
The cuts are equal to about 4% of HSBC's 335,000 strong workforce, and comes as banks around the world are cutting staff and trimming costs in expectation of continued financial slowdown.
Yesterday, Bradford & Bingley, which has been hit hard by turmoil in the financial markets, revealed that it was axing 370 jobs - or a tenth of its workforce in an effort to cut costs. It has lost over 90% of its market value this year as it has struggled to finance its lending due to the ongoing credit crunch.