[LONDON] Contractors at HSBC's investment banking division in London have had their pay cut by 10 per cent as part of cost-cutting plans, according to a source familiar with the matter.
The Times newspaper reported the pay cuts on Thursday, saying the policy applied to all contract workers in the global banking and markets division. "As a routine practice in Global Banking & Markets we regularly review rates for contractors to ensure alignment with the market and manage costs," HSBC said in a statement.
The cuts do not apply to HSBC's permanent staff.
HSBC plans to push through annual cost savings of up to US$5 billion by 2017.
Europe's biggest bank said in June that it planned to slash nearly one in five jobs and shrink its investment bank by a third to combat sluggish growth.