HSBC's markets job cuts caused consternation as unexpected traders trimmed
As we reported on Friday, HSBC spent the end of last week cutting jobs in its markets business.
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The bank is declining to comment on how many jobs went in total, but sources suggest it was close to 45 people globally and that the cuts weren't restricted to equities. HSBC's FX traders also appear to have been affected, with cuts particularly hitting people at director level. Some of those who are leaving were reportedly very profitable in previous years.
HSBC's cuts come after complaints that the equities business in particular has been taken over by ex-Credit Suisse staff. HSBC hired eight senior Credit Suisse people globally in late 2023. Many are now in senior sales and sales trading roles at the bank. "There's lots of politics there," says one equities source, speaking off the record.
By cutting traders now, HSBC can avoid paying them bonuses when it announces next month. Last year, HSBC paid its 508 material risk-takers - including its top traders - an average of $1.4m in combined salary and bonus. This year, the bank has reportedly been warning that bonuses there will disappoint as it cuts costs.
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