Date
28 March 2017
Stuart Gulliver outlined the cost-cutting plan last year when he said he was confident of hitting expense targets by the end of 2017. Photo: Bloomberg
Stuart Gulliver outlined the cost-cutting plan last year when he said he was confident of hitting expense targets by the end of 2017. Photo: Bloomberg

HSBC eyes cuts in senior investment banking jobs to slash costs

HSBC Holdings Plc. is slashing senior positions in investment to reduce costs across the company.

The cuts reflect a gradual trimming of jobs, said the person, who asked not to be identified because the move hasn’t been announced publicly, Bloomberg reports.

Reuters earlier on Tuesday reported the reductions would affect dozens of employees.

Last year, chief executive Stuart Gulliver outlined a three-year plan to pare back HSBC’s global network by shutting money-losing businesses and eliminating as many as 25,000 jobs.

The cost cuts helped the bank beat analysts’ estimates for first-quarter profit when Gulliver said he was confident of hitting expense targets by the end of 2017.

First-quarter profit fell 15 percent at the investment bank, which is run by Samir Assaf.

In February, Assaf hired Matthew Westerman, the former chairman of investment banking in Europe at Goldman Sachs Group Inc., to be HSBC’s co-head of global banking.

HSBC said in February that it would fold its capital-financing arm into the investment bank and some of the job cuts are a result of duplication as the businesses are combined.

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