HSBC bankers are wondering about bonuses, applying for jobs

Now that HSBC doesn't want its London, European or US M&A and equity capital markets (ECM) bankers, people there who thought they had jobs for life are scrabbling to find alternatives. They're also wondering about their upcoming bonuses. 

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Bloomberg reported this week that HSBC's job cuts in light of the strategy change will be "in the low hundreds" and said that bankers in the unwanted regions will be given the option of transferring to Asia or the Middle East. However, insiders at the bank say there's uncertainty on the number of cuts and that there is no standardized procedure for transferring internally. 

"Senior people are telling us there's no clarity on the numbers impacted," says one London HSBC investment banking VP. Another insider said he expects the cuts to be "many multiples of 200."

Without an official geographical transfer programme, people like Jon Connor, HSBC's head of advisory & investment banking coverage for the MENA region, are suddenly popular. "Transfers are being arranged on a personal basis, speaking to seniors," says one London investment banking associate. Connor and his colleagues in the Middle East are the new people to know, along with senior bankers at HSBC in Asia. 

Even if HSBC's people in other regions can be persuaded to rescue bankers from London and the US, not everyone is in a position to move. "If you have a spouse and children, it's harder to transfer overseas," says the London VP. "This is going to be a problem for a lot of people at vice president level and above." 

The uncertainty is compounded by concerns about bonuses. In a normal year, HSBC announces its bonuses in mid-February. This year, there's no clarity on whether they'll be forthcoming. The uncertainty is understood to be a source of discouragement internally. Although HSBC's M&A and ECM bankers have been told not to originate new deals, existing deals are still being executed. "People are being very reticent about working too hard," says the associate. "We have no idea when we'll be fired or whether we'll get a bonus if we work through to the completion of these deals." 

Another London banker said the hope is that HSBC will soon announce retention bonuses to people it wants to keep. For the moment, though, everyone is assuming that they're about to be fired. "I've spoken to all the senior people there," says one London headhunter. "They think bonuses will be moot at best." 

"We're all scrambling to find a new job," says the associate. "There's been no communication."

HSBC didn't respond to a request to comment on bonuses for 2024. 

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