HSBC imposes hiring and pay freeze

HSBC froze pay and hiring at its consumer and investment banking units as part of its plans to cut as much as $5bn from its cost base by the end of 2017, Bloomberg reported citing a spokesperson for the lender.

The decision, which was announced to staff on 29 January, followed an indefinite freeze on hiring by rival Barclays in December.

It was also taken ahead of the close of an eight-month review, possibly by early this week, into the best location for the Asia-focused bank´s headquarters.

As part of its three-year cost-cutting plan, HSBC was seeking to cut the number of full-time staff by between 22,000 and 25,000, with as many as 8,000 of those lay-offs expected to come from the UK.

Hong Kong was considered to be the closest rival to replace London, although in the end the elevated costs of a relocation where expected to dissuade management from announcing any changes.