HSBC Is Laying Off 197 Employees
HSBC Finance, which deals with mortgage lending, has announced that it will be laying off 197 employees at its Brandon, Florida office.
The affected employees at the subsidiary of HSBC Holdings plc include mortgage servicing support staff, collection specialists, and analysts.
The Worker Adjustment and Retraining Notification (WARN) document that the company filed with the Florida Department of Economic Opportunity says that the jobs will be permanently eliminated. The layoffs will be taking place during September or October.
This is the second round of layoffs announced by the mortgage lender this year. A few months ago, HSBC Finance announced several hundred layoffs at the same Brandon location, as well as at its offices in Chicago. The 357 layoffs at the Brandon facility meant that there were only about 270 employees left at the office after June.
The latest round of layoffs will result in only about 70 employees remaining at the Brandon office. The company’s WARN notice mentions that the office will continue to stay open after these layoffs.
The layoffs are a part of the company’s efforts to downsize its workforce as it sells off a major portion of its mortgage portfolio.
Back in April, company spokesperson Robert Sherman said, “We are reducing the size of our workforce in step with declining activity as we continue to wind down and sell off HSBC’s Finance’s mortgage portfolio.”
HSBC Finance stopped selling mortgages in 2008 after the real estate bubble burst. Since then, the lender has been selling off its loans portfolio. Just recently in March, about $4.9 billion worth of mortgages were sold to Credit Suisse. In April, HSBC Finance’s mortgage portfolio was only about $2.0 billion.
The parent company, HSBC Holdings, is, continuing to write mortgage loans, however. HSBC’s revenue has been on a steady decline since 2012. In fact, the company reported a pre-tax loss of $3.4 billion in the last quarter of 2016.
“HSBC cuts nearly 200 jobs in Brandon office,” Tampa Bay Times, July 5, 2017.
“HSBC laying off 150 Chicago employees,” Chicago Business Journal, April 3, 2017.