HSBC Holdings has laid off over two dozen analysts in recent days as part of its ongoing overhaul of its investment banking division, sources familiar with the matter told Bloomberg. Per the report, people affected by the move included Steven Major, HSBC’s Dubai-based global head of fixed income research. Most of these cuts were in Europe, according to the people who talked to Bloomberg on condition of anonymity.
As part of the sweeping changes, HSBC is combining macro-strategy across asset classes including foreign exchange and fixed income.
Per the sources, Murat Ulgen will now act as interim head of macro strategy in addition to his existing role as global head of emerging markets research. Meanwhile, Eliot Camplisson and Raj Sinha will expand their roles to become co-heads of equity research globally, and Janet Henry will continue to lead the global economics team, according to the person who talked to Bloomberg.
The restructuring came as Chief Executive Officer Georges Elhedery continued to streamline the lender to increase efficiency. Since taking up the position in September, he has combined HSBC’s commercial and investment banking units, while making operations in the UK and Hong Kong standalone businesses. The CEO has also shuttered most of the bank’s mergers and acquisition and equity underwriting operations in the US, Britain and continental Europe.
Elhedery’s extensive overhaul of the bank is projected to incur $1.8 billion in charges over the next two years. Additionally, per the Bloomberg report, the Bank is planning to invest several billion dollars more to shift resources from lower-performing units to areas with stronger revenue potential.
Recently, HSBC had announced reorganisation of its capital markets and corporate advisory units into a new business in order to grab a larger share of the booming private credit industry.
The company is also in process of trimming some vice-chairman roles that reported to Greg Guyett, the former head of the bank’s global investment banking arm, thee people familiar with the matter said.
