HSBC: When a Bonus Turns Into a Termination Letter
Investment bankers at HSBC, who were expecting bonus payments, instead received termination letters – and this may only be the beginning.
British banking giant HSBC laid off a number of investment bankers on the very day they were scheduled to receive their bonuses, the «Financial Times» reported on Thursday.
As the paper reports, many of the affected bankers were left empty-handed, meaning they received no bonus at all. This is unusual within the industry: other investment banks typically pay at least reduced bonuses to employees being laid off as part of restructuring processes.
Shift in Employee Relations?
«This is very untypical for HSBC,» the newspaper quoted one employee as saying. Until now, the bank has had a reputation for treating its staff well.
HSBC declined to comment.
Investment Banking Exit on the Table
The layoffs are likely tied to the aggressive cost-cutting measures the bank announced in February. HSBC aims to achieve savings of $300 million this year, and to reduce its annual cost base by $1.5 billion by the end of next year.
According to the «Financial Times», a complete withdrawal from investment banking in Asia and the Middle East has also been under consideration.
