HSBC Cuts Over Two Dozen Analysts in Global Investment Banking Restructuring
HSBC Holdings Plc has laid off more than two dozen analysts as part of a broader restructuring of its investment banking operations, according to people familiar with the matter. The move reflects the London-based bank’s ongoing efforts to streamline operations and enhance efficiency.
Among those affected is Steven Major, HSBC’s global head of fixed income research, based in Dubai. The majority of the layoffs have occurred in Europe, as the bank consolidates its macro strategy teams across foreign exchange and fixed income divisions.
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As part of the reshuffle, Murat Ulgen will serve as interim head of macro strategy while retaining his current role as global head of emerging markets research. Eliot Camplisson and Raj Sinha have been appointed co-heads of global equity research, and Janet Henry will continue leading the global economics team.
HSBC previously maintained one of the largest research teams among global banks, with over 330 analysts producing more than 12,000 research reports annually. Its equities team alone covered around 2,000 companies worldwide.
The restructuring mirrors similar moves by major Wall Street firms that have been cutting back on research divisions due to tightening regulations, market shifts, and the rising popularity of passive investment strategies. HSBC’s actions are expected to lead to $1.8 billion in restructuring charges over the next two years, with additional investments redirected toward higher-return business areas.
CEO Georges Elhedery has also reorganised the bank’s operations, merging its commercial and investment banking arms and making its UK and Hong Kong businesses more autonomous. Recent changes include shutting down large portions of its mergers and acquisitions and equity underwriting activities in the US, UK, and Europe.
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Despite the cuts, HSBC plans to retain some equity research presence in Europe, focusing on multinational companies with operations in Asia, the Middle East, and emerging markets, where it maintains a full-service investment banking model.
The bank’s stock has gained over 10% in London this year, although its significant exposure to Asia leaves it vulnerable to global geopolitical tensions and shifting trade dynamics.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
