HSBC cuts 10% of US debt capital markets team amid overhaul

HSBC has cut 10 per cent of its US-based debt capital markets (DCM) team, continuing to cull costs after announcing a revamp of the business last October, said people familiar with the matter. 

At least six people in New York were let go on Thursday (Feb 19), said the people, who asked not to be identified discussing private information. The employees included one managing director, two directors, two associates and one analyst. 

HSBC unveiled a cost-cutting programme last year as chief executive officer Georges Elhedery tries to strip out layers of management and cut 8 per cent of employee costs, aiming to save some US$1.8 billion.

Since taking the helm in 2024, he has combined HSBC’s commercial and investment banking units, while making operations in the UK and Hong Kong standalone businesses. 

HSBC also pulled back from mergers and acquisitions and equity capital markets in the UK, Europe and the US to focus on Asia and the Middle East.

In an e-mail, a spokesperson for HSBC declined to comment on individuals but said the bank is committed to retaining talent and is proud of its DCM business.

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HSBC is set to report earnings on Feb 25 after its US rivals posted strong fourth-quarter results.

The bank has consistently been among the top 10 underwriters for US corporate debt sales over the past three years, based on data compiled by Bloomberg. BLOOMBERG