HSBC cuts 500 London-based jobs

by Gill Montia

Story link: HSBC cuts 500 London-based jobs

HSBC has announced that it is cutting 500 London-based jobs.

The move forms part of worldwide plans to reduce the group’s headcount by 1,100, or 4%.

The UK staff affected work for the bank’s investment banking division, which is located at Canary Wharf.

HSBC has weathered the credit crisis far better than many of its competitors but says it is now responding to difficult market conditions.

The bank’s profit fell by a mere 28% in the six months to the end of June, compared with a 70% fall for Lloyds TSB and a decline of 72% for HBOS.

However, HSBC had adopted a cautious outlook for 2009. Earlier this week it withdrew from its proposed £3.3 billion acquisition of a majority stake in Korea Exchange Bank, saying that for the time being it would focus on developing its existing operations in the country.

News of the HSBC job losses follows yesterday’s announcement from buy-to-let lender, Bradford & Bingley, that it is closing its Borehamwood centre and removing mortgage advisers from its branches.

In all, 370 jobs losses are anticipated.