HSBC cuts 500 jobs as banking giants shed weight

hsbc

Global banking giant, HSBC is cutting over 500 jobs at its markets and global banking unit as the banking industry looks to tame dropping revenues and sluggish growth.

Earlier this week, Morgan Stanley was reported to have cut half a dozen of jobs from its Asian equity business. The banking giant has been downplaying its equities trading business as the unit has been underperforming.

HSBC is taking the move as part of its new CEOs mandate to reduce costs. Last October, Greg Guyett, an ex-JPMorgan executive joined HSBC and it is expected that he will be wanting to have something to show for it.

Barclays, another peer of HSBC and JPMorgan in the global and investment baking business is expected to take a similar move as a result of the inter-connectedness of their business.

Some other peers are using an opposite strategy, Mitsubishi UFJ Financial Group Inc., a Japanese bank group is reported to have offered over 500 directors and managing directors a severance package to exit the bank.