It is HSBC’s turn to effect layoffs

After American Express, it could be HSBC’s turn next as the spillover effects of the global financial meltdown hit international financial service firms with significant operations in India.

Global banking giant HSBC’s India arm is likely to spell the bad news of job cuts to employees soon. Sources within the organisation said all employees have been put under the scanner and the pressure to outperform is tremendous. Ths situation is being monitored on a day-to-day basis and layoffs could start in the next few weeks, the sources said.

Though it is not known how many employees would be laid off, the number could well be about 200.

The bank has already announced that 500 jobs would be cut across the Asian markets. Though HSBC earlier said that there would not be any major impact in India, insiders said that layoffs here are a reality as the bank has a large network in New Delhi.

“There is uncertainty and panic among employees and we in India are unlikely to be spared as we are part of the global scenario,” an HSBC official said on condition of anonymity.

An HSBC spokesman, however, denied any such development. “There is no basis to the information,” he said.

Other financial sector giants such as Citibank and American Express have resorted to job cuts in India. Citibank officials say the impact is minimal in India, though they do not deny job cuts.

HSBC had announced to cut more than 1100 jobs, of which about 500 were in its UK operations. The bank has about 335,000 employees across the globe.