HSBC Cuts 10% of U.S. Debt Capital Markets Team Amid Ongoing Business Revamp

HSBC has reduced its U.S.-based debt capital markets (DCM) team by approximately 10%, continuing a broader cost-cutting strategy following a major business overhaul announced in October, according to a Bloomberg News report citing sources familiar with the matter. The latest round of layoffs reportedly affected at least six employees in New York, underscoring the bank’s ongoing efforts to streamline operations and improve efficiency within its investment banking division.

The workforce reduction is part of HSBC’s wider restructuring plan aimed at strengthening profitability and sharpening its competitive edge in global capital markets. Like many international banks, HSBC has been reassessing its business model in response to changing market conditions, fluctuating interest rates, and evolving client demands. The decision to trim its U.S. debt capital markets team reflects a strategic shift as the bank refocuses resources on high-growth and high-return areas.

Debt capital markets play a crucial role in helping corporations and governments raise funds through bonds and other debt instruments. However, volatility in global financial markets and slower deal activity have pressured revenues across the investment banking sector. Major financial institutions have responded by reducing headcount and tightening expenses to protect margins.

In a statement emailed to Reuters, an HSBC spokesperson declined to comment on specific individuals but emphasized the bank’s commitment to performance and talent development. “We don’t comment on individuals. We are committed to attracting and retaining talent as part of HSBC’s high-performance culture and are proud of the progress of our DCM franchise,” the spokesperson said.

The HSBC layoffs highlight broader trends in the banking industry, where cost discipline and strategic restructuring have become central themes. As global banks navigate economic uncertainty and competitive pressures, further adjustments in staffing and operations may follow, particularly within capital markets and investment banking divisions.