In a new twist to cutting costs before year end, HSBC’s investment banking division in London have cut 100's of workers pay by 10 per cent and ordered them to take two weeks of unpaid leave by the end of the year.
It is understood to affect financial analysts and others in core parts of the bank as well as IT workers, some of whom are more used to the ups and downs of contract work. Along with the compulsory unpaid holiday, described as “mandated worker furloughs”, the reduction amounts to a 14 per cent cut. Several hundred people are understood to have been affected by the move, which comes into effect on October 26. “It’s clearly a desperate attempt to get costs down in the current financial year."