More IT jobs are under threat in the financial services sector as two leading banks, HSBC and Credit Suisse, announced plans to slash their workforce.

The recession has started to impact the workface as more than 1,150 job cuts were announced yesterday across the UK financial sector.

HSBC will cut another 500 jobs following a review of the business and "current economic conditions."

"We deeply regret taking this step, but we consider it essential to ensure our business is operating as efficiently as possible and that we are best placed to deal with the economic downturn and maintain our levels of customer service," HSBC, UK managing director, Paul Thurston said.

Swiss banking firm Credit Suisse said it is cutting around 650 UK jobs, representing about 10 per cent of the company's UK workforce. A spokesperson for the Swiss bank blamed "market conditions and projected staffing levels required to meet client needs".

Neither bank would confirm whether the announcements impact back office workers or IT staff.

This is the second wave of job cuts at HSBC in recent times, which announced 1,100 positions would go from its investment banking division in September, including 500 front and back office jobs in London.

Over 100,000 jobs have been axed at major global financial institutions since September, including 52,000 from Citibank.

And more redundancies are on the cards. It has been speculated that Barclays could cull thousands of jobs as it integrates the Lehman Brothers North American investment banking and capital market business.


Also small UK lender London Scottish Bank went into administration on Monday, putting 700 jobs in danger at the Manchester-based company.

According to reports, the Royal Bank of Scotland is expected to make thousands of job cuts in its global banking and markets divisions as it comes to terms with the economic slowdown.

Union body Unite condemned the HSBC decision. Derek Simpson, Unite joint general secretary said: “The decision by HSBC to make 500 job cuts is a disgrace. Unite is appalled that this news has been delivered so close to Christmas. The union has seen no business rationale for these job losses. As far as we can see HSBC is simply using the economic downturn as an excuse to make job losses. The bank has again this year reported an increase in half yearly profits and continues to do very well."

Leo King contributed to this report

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