HSBC is making redundancies in the Middle East, should you be worried?
HSBC is implementing the second round of redundancies in the MENA region in two years. Again, the proportion of staff affected is minimal (at 3%), but this time it's driven by a global downsizing operation, rather than concerns over the Middle East.
Around 360 people in HSBC's 12,000-strong Middle East workforce are to be cut. This follows a period of growthin the region by the bank last year, but is being driven by a global downsizing operation.
Still, the troubles across the MENA region in recent months have led some international banks to reassess their hiring plans for this year. At the moment, this is largely pausing recruitment until the situation becomes more stable, but is there a chance more redundancies could be coming?
"I've been expecting another round of cuts among some international banks as revenues have been depressed for some time now," says Peter Greaves, head of financial markets at headhunters McArthur Murray. "However, I think these will be limited. Most banks have been switching their hiring focus to growth areas - wealth management, asset management and, to a lesser extent, commercial banking."
Standard Chartered has just revealed that headcount fell by 800 in the first quarter of this year and, considering its emerging markets focus, it's likely that the Middle East saw some reduction. Barclays is also moving back office functions from Dubai to Johannesburg.
There are, however, some more positive signs - Standard Chartered has just launched regional custody services in the Middle East and Citibank has, perhaps surprisingly, launched a new wealth management centre in Bahrain.
Much has also been made of Dubai benefitting as a safe haven from the troubles in the Middle East. This is beginning to filter through to recruitment.
"We're seeing a shift in focus from retail banking from international banks in the UAE, but a new desire to recruit for commercial banking positions" says James Sayer, associate director - Middle East, at Robert Half.
