HSBC is cutting 6,100 jobs nationwide as banks continue to struggle and some local employees will be among those laid off. HSBC is getting out of the consumer lending side of the business in the United States and laying off workers in that division. HSBC runs three consumer lending branches locally under the name "Beneficial". Those offices are located in Amherst, West Seneca, and Batavia. The international banking giant also operates another three local consumer lending offices under the old name of "Household Finance Corporation". Local employees were expecting to learn their fate through a conference call.
Corporate HSBC officials are not commenting on specific numbers of affected employees in Western New York, or if any of the local "Beneficial" or "HFC" branches will survive. Vice President of Public Affairs Kate Durham says through an email: "HSBC greatly appreciates the dedication and contribution of our employees. Affected employees will receive detailed information about benefits, severance, internal job opportunities and outplacement services. Impacted employees receive at least 30 days notice."
Despite a steep drop in profits HSBC still made money in 2008 in every market except North America. Much of it came from an increase in commercial lending and a growth in private banking, especially in Asia. "Our Asia business continued to perform strongly," said Michael Geoghegan, HSBC CEO, "They contributed to a thirty percent growth in profits to a record $4-7 billion. There was notable growth in Korea, mainland China and in India."
In fact HSBC would have made a nearly $20 billion pre-tax profit last year if it did not have to write off its entire U.S. mortgage lending unit. That's the division that's now being shut down.
These layoffs will not affect any of the HSBC bank branches in Western New York.
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