A person familiar with the situation noted that HSBC’s move was unexpected. “It’s very unlike HSBC,” they said.

In a move signaling a tougher stance on costs, HSBC reportedly dismissed several investment bankers on the same day they were due to learn their bonus figures—without awarding bonuses to many of those let go.

According to Financial Times, the layoffs affected employees at vice-president level and above, marking a shift in the bank’s traditionally more people-centric approach. The decision is seen as part of a broader cost-cutting strategy under the bank’s new CEO, Georges Elhedery, who took over in January 2024.

A person familiar with the situation noted that HSBC’s move was unexpected. “It’s very unlike HSBC,” they said. “The bank has had a reputation for looking after its people.” However, in the face of economic pressures and an evolving banking landscape, HSBC appears to be prioritizing financial discipline over tradition.

While the bank has not officially commented on the development, this could be part of a wider effort to streamline operations and improve profitability. HSBC has been working to refine its investment banking division, focusing on key growth areas while reducing costs in underperforming segments.

The layoffs come amid a challenging time for the financial sector, with global investment banks grappling with slower deal-making, rising interest rates, and economic uncertainty. Several major banks have already implemented job cuts to navigate the downturn, and HSBC’s decision underscores the growing pressure on institutions to maintain profitability.

It remains to be seen whether HSBC will continue this cost-cutting approach in the coming months, but the sudden layoffs on bonus day send a clear message about the bank’s changing priorities.