HSBC job cuts: Singapore saved; Hong Kong hit
Yes, we’ve all heard HSBC’s dramatic announcement that it will slash 30,000 jobs globally, mostly in the back office. But some light has now been shed on what this means for Asia Pacific.
The Straits Times reports that the firm will not axe staff in Singapore and will instead hire up to 1,000 people in trade, wealth management and financial markets over the next five years. It’s a similarly reassuring tune in China and India where the focus is on recruitment, not retrenchment. Likewise, The Sydney Morning Herald reports today that Australia is expected to escape the purge.
Hold on, what about Hong Kong?
Surprisingly then, HSBC Asia Pacific chief executive Peter Wong Tung-Shun has not ruled out the possibility of layoffs in Hong Kong, according to South China Morning Post. Although he refrained from providing specific redundancy figures, he said there would definitely be a “reallocation of resources”.
HSBC Chief Executive Officer Stuart Gulliver said earlier this week that the job cuts will affect “support staff where we believe we have created an unnecessary bureaucracy in this firm over a number of years.”
Are the bank’s cuts in support functions indicative of the general Hong Kong market?
Recruiters say most firms won’t cull jobs on a grand scale. Nick Lambe, managing director, Morgan McKinley, Hong Kong, says: “By and large i-banks will continue to look to Asia to generate revenue as it's a growth market. It’s probably too early to tell the extent to which job cuts will affect Hong Kong, especially since these take some time to be implemented. We anticipate that most global banks will focus on reducing headcount outside of Asia.”
Matthew Hill, managing director Hong Kong, Ambition, hasn’t heard anything about layoffs either. However, he reckons if they do happen, junior administrators would be the first to go. Those in middle management and upwards are unlikely to be axed.
The Hong Kong market this year has been quite positive, even though banks are more cost conscious after some unveiled disappointing half-year results, say recruiters.
However, while 2011 “hasn’t been as frenetic” as last year, Hill is seeing fairly high demand for talent in equity derivatives and private wealth management support. “Hong Kong has always been very candidate driven, so demand for talent will continue, especially for those with specialised skill sets. However, there may be fewer firms chasing after the same talent, so this may cool the market slightly.”
Handing out jobs
While HSBC gives some the chop, it’s also giving jobs to others. Apart from the 15,000 people the bank wants to hire in emerging markets, hiring in Hong Kong is ongoing as well. An anonymous source told us that HSBC is on the hunt for mid to senior candidates in risk, finance, operations and prime services.
The Straits Times reports that the firm will not axe staff in Singapore and will instead hire up to 1,000 people in trade, wealth management and financial markets over the next five years. It’s a similarly reassuring tune in China and India where the focus is on recruitment, not retrenchment. Likewise, The Sydney Morning Herald reports today that Australia is expected to escape the purge.
Hold on, what about Hong Kong?
Surprisingly then, HSBC Asia Pacific chief executive Peter Wong Tung-Shun has not ruled out the possibility of layoffs in Hong Kong, according to South China Morning Post. Although he refrained from providing specific redundancy figures, he said there would definitely be a “reallocation of resources”.
HSBC Chief Executive Officer Stuart Gulliver said earlier this week that the job cuts will affect “support staff where we believe we have created an unnecessary bureaucracy in this firm over a number of years.”
Are the bank’s cuts in support functions indicative of the general Hong Kong market?
Recruiters say most firms won’t cull jobs on a grand scale. Nick Lambe, managing director, Morgan McKinley, Hong Kong, says: “By and large i-banks will continue to look to Asia to generate revenue as it's a growth market. It’s probably too early to tell the extent to which job cuts will affect Hong Kong, especially since these take some time to be implemented. We anticipate that most global banks will focus on reducing headcount outside of Asia.”
Matthew Hill, managing director Hong Kong, Ambition, hasn’t heard anything about layoffs either. However, he reckons if they do happen, junior administrators would be the first to go. Those in middle management and upwards are unlikely to be axed.
The Hong Kong market this year has been quite positive, even though banks are more cost conscious after some unveiled disappointing half-year results, say recruiters.
However, while 2011 “hasn’t been as frenetic” as last year, Hill is seeing fairly high demand for talent in equity derivatives and private wealth management support. “Hong Kong has always been very candidate driven, so demand for talent will continue, especially for those with specialised skill sets. However, there may be fewer firms chasing after the same talent, so this may cool the market slightly.”
Handing out jobs
While HSBC gives some the chop, it’s also giving jobs to others. Apart from the 15,000 people the bank wants to hire in emerging markets, hiring in Hong Kong is ongoing as well. An anonymous source told us that HSBC is on the hunt for mid to senior candidates in risk, finance, operations and prime services.
