HSBC, Britain’s biggest bank is cutting over 1000 jobs in its Europe and America operations in what could be a beginning of a job slash tsunami.

Last week the bank announced redundancy for 1,100 of its investment banking staff - 500 of those from its country head office, United Kingdom, while the rest will be made up from Europe, United States and Asia. In Hong Kong, the country where the first HSBC bank operation was conceived, 100 staff are set to lose their job.

Both permanent and contract workers will be affected by the move, which will be completed within a few months.

While the financial situation of the company seems strong enough to stand the immense economic pressure, reducing the size of its baggage is inevitable to safeguard the bank’s long term presence and market strength. Last month, HSBC recorded its steepest fall in profits, with the credit crisis in the United States pointed as the culprit.

It is being reported that those affected by the mass lay off include high-paying investment bankers, IT professionals, administrative personnel as well as other back-office support staff. The 1,000-odd job cuts is also part of the company’s move to reduce its total workforce by 4%.

HSBC presently employs more than 300,000 people in more than 100 countries worldwide. As the 1,100 figure represents only less than 0.5% of the total workforce, many of the bank staff are now waiting anxiously who will make it to the rest of the remaining over 3.5%, with up to 10,000 more people to find themselves out of job soon.

Bloomberg named HSBC as the third largest bank in the world by market capitalization earlier this year, while Forbes hails it as the new world’s largest company for the year 2008. Additionally, it also won the most valuable banking brand award by The Banker Magazine.

Technorati Tags: hsbc job cut, uk job loss

Other posts you may want to read:

1. HSBC Named the World’s Largest Company
2. eBay To Lay Off 10% Staff
3. Citigroup Ready to Lay Off More Staff
4. Citibank Job Cut Arrives in Malaysia
5. US Graduates Not Keen on Bank Jobs