More Firms Wield The Christmas Job Axe

Looks like Dresdner Kleinwort has started something of a trend. As we know, 5% of the firm's staff are said to be for the chop following a thorough performance-review / cost-cutting exercise. But Dresdner Kleinwort is not alone.

The Times reports that HSBC Investment Bank is shedding around 130 jobs in its fixed income group. 20 staff are said to have been chopped in New York, and around 30 in Hong Kong, and the rest mostly in London.

The move comes as Financial News reports that, according to research firm Dealogic, 'global debt capital markets revenues have reached records levels this year'. Worldwide revenues are said to have reached $19.9bn, about 10% up on 2005.

The Wall Street Journal reports that HSBC's Corporate Investment Banking & Markets group accounted for 25% of HSBC's total profit for the first six months (the unit contributed $4.67bn), but that third-quarter revenues were 'reasonably flat'. The latest job culls are said to be a 'routine alignment' and HSBC was keen to confirm that the cull does not represent a change in strategy, as it remains committed to its investment bank. The investment banking unit is said to have hired 1,894 heads in the six months to the end of June, and 822 staff left during the same period.

There are unsubstantiated rumours that other firms, including JPMorgan, are taking out the pre-Xmas axe, and culling staff ahead of bonuses. And Bloomberg reports that RBC Capital Markets has 'eliminated' 41 jobs in bond sales in the US this week, as the bank 'align(s) our operations in the US the way we have set up in other regions'. The staff who have been let go were part of the firm's middle market group which sells to institutional clients. RBS has hired 140 into its US fixed income group this year, and now employs around 1,200 globally in this area.


Sources - Bloomberg, Wall Street Journal, Financial News, wallystreetfolly.com, dealogic.com

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