An IMGW News Report
HSBC is set to axe hundreds of investment banking jobs in London as it streamlines operations under chief executive Georges Elhedery. The cuts come as the bank retreats from key areas of dealmaking in the UK and Europe, focusing instead on its core strengths in debt markets and expansion in the Middle East and Asia.
Bankers in London were informed of the redundancies between 20 and 24 February, with insiders suggesting that up to 300 front-line roles will be lost in the short term. Additional reductions are expected in support functions, including legal and compliance.
The lender is shuttering its mergers and acquisitions (M&A) and equity capital markets (ECM) businesses in the UK and Europe, placing as many as 70% of roles in some sector teams at risk. Cuts extend beyond these divisions, with redundancies in leveraged finance also on the table.
The exact scale of the job losses remains unclear, as some bankers are being offered redeployment opportunities in the Middle East and Asia, while others may remain temporarily to see out ongoing transactions. A number of M&A bankers have been asked to stay on into next year to complete pending deals. In Europe, legal constraints could slow down the redundancy process.
HSBC has refused to disclose the total number of roles at risk. A spokesperson said the bank remains committed to supporting clients with “best-in-class debt financing capabilities,” focusing on debt capital markets, leveraged acquisition finance, corporate risk solutions, and select M&A and ECM operations in the Middle East and Asia.
Retreat and Realignment
The restructuring will see much of HSBC’s UK-focused investment banking team disbanded. Its broader ECM unit, which comprises over 40 bankers, is also being significantly scaled back, with only a handful of senior bankers retaining global mandates. Around 20 sector-focused dealmaking teams are set for deep cuts, leaving only a small contingent handling corporate banking transactions.
The bank has set a target of reducing employee costs by 8%, with senior positions under particular scrutiny as Elhedery seeks to eliminate role duplication. The newly formed corporate and institutional banking division—born from a merger of commercial and global banking units—is expected to bear the brunt of the downsizing.
On 21 February, HSBC asked London-based investment bankers to work from home as it implemented the cuts. Some affected employees were informed via brief Zoom calls. Others, who had performance discussions scheduled for 24 February, initially assumed they were safe—only to learn otherwise.
The shake-up marks the latest chapter in HSBC’s troubled history with investment banking. Despite repeated efforts to compete with Wall Street rivals, its ambitions have often been thwarted. The bank has long dominated debt capital markets but has struggled to establish itself as a major force in M&A.
Now, with investment banking scaled back, HSBC is refocusing on debt markets and leveraged finance while reinforcing its position in Asia and the Middle East. Further reviews are underway, including an assessment of its equities sales and research business, though Elhedery has indicated that any additional job cuts in this area will be less severe.
