HSBC Reduces U.S. Debt Capital Markets Headcount by Roughly 10%

HSBC has cut about 10% of its U.S.-based debt capital markets team, letting go of at least six New York staff across multiple seniority levels. The reductions come amid a wider restructuring initiative aimed at simplifying management layers and cutting employee costs by 8% to reach $1.8 billion in savings under CEO Georges Elhedery.

Key Points

HSBC cut about 10% of its U.S.-based debt capital markets team, affecting at least six New York employees across seniority levels.
The reductions are part of an October overhaul aimed at an 8% reduction in employee costs and $1.8 billion in savings.
The bank has reorganised divisions since 2024 and narrowed M&A and equity capital markets activity in the UK, Europe and U.S. to focus on Asia and the Middle East.

HSBC has reduced the size of its U.S. debt capital markets group by roughly 10%, with at least six New York-based staff members dismissed as part of an ongoing cost-reduction programme, people familiar with the decisions said. The affected employees included one managing director, two directors, two associates and one analyst who were let go on Thursday.

The personnel moves form a component of a larger overhaul announced in October, driven by Chief Executive Georges Elhedery. The plan targets a reduction in employee-related costs of about 8%, with an explicit savings goal of $1.8 billion, accompanied by efforts to streamline management layers.

Since assuming the chief executive role in 2024, Elhedery has carried out structural changes across the bank. These steps have included merging the commercial and investment banking divisions and reorganising operations in the United Kingdom and Hong Kong into independent units. As part of the strategic reorientation, the lender has curtailed mergers and acquisitions work and equity capital markets activity in the UK, Europe and the United States to concentrate resources on Asia and the Middle East.

The latest cuts in the U.S. debt capital markets team reflect that broader emphasis on reshaping the bank's footprint and cost base. Those who were dismissed requested anonymity when discussing the personnel changes.

Context and immediate details

The headcount reduction affected at least six New York employees across senior and junior roles.
The October reorganisation aims to streamline management and achieve $1.8 billion in savings by lowering employee costs 8%.
Since 2024, leadership moves include a merger of commercial and investment banking and the creation of standalone UK and Hong Kong units.

What the bank's strategy reflects

The personnel adjustments are consistent with a strategy to prioritise certain geographic markets and lines of business, with explicit scaling back of M&A and equity capital markets activities in Western markets in favor of greater focus on Asia and the Middle East.

Reporting on internal personnel matters relied on accounts from individuals familiar with the decisions who asked not to be identified.

Risks

Ongoing headcount reductions and reorganisation could further affect the bank's operations in U.S. capital markets - impacting the investment banking sector.
The narrowing of M&A and equity capital markets activities in Western markets introduces execution risk for clients that rely on HSBC in those regions - affecting corporate finance and advisory markets.
Uncertainty remains around the pace and extent of further cost-cutting measures and organisational changes as the bank pursues its $1.8 billion savings target - relevant to banking sector employment and capacity.

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