Clarification on 950 HSBC layoffs

We have many questions lately about an article we ran a few days ago. According to insiders there have been layoffs at two HSBC locations. Reports are still unconfirmed, thus you should consider this to be rumor or speculation until we see it in the news. Here is what we were told so far. On August 14th we received a cryptic note from Massachusetts which said “hfc/beneficial laid off some 450 people today.” Two days later, August 16th, a reader commented that 500 were laid off in Carmel. Following that, on the same day, a reader commented “that can be confirmed. in todays market the company did decided to do some much needed downsizing.” (copied exactly as written)

That is when the questions started. Let me make one thing perfectly clear – we own no HSBC stock and have no vested interest in HSBC. In all fairness to our readers we certainly appreciate your comments and input. We also recognize that unconfirmed rumors can benefit those who own stock and want to sell short. That takes nothing away from those who submitted comments and reports. I think HSBC should get out in front of these developments. Unfortunately today’s markets have a tendency to make small routine business decisions into a huge event, while putting a spin on the event. In a way I can see why HSBC has not released any information.

To all of you who ask why we are the only website that carries this story, all I can say at this time is that people were considerate enough to send us their emails. That is what we do. We monitored Household International and William F. Aldinger III before HSBC came along. We had no choice but to monitor HSBC after they hired Aldinger and purchased Household International. Insiders have provided us with information since 2001. We certainly appreciate it. For those of you worried about your jobs or wanting more information I simply do not have more at this time. If I did I would have replied confidentially to your emails.

May the Lord watch over all of us, keeping us safe from harm while opening new doors as He closes doors behind us. Please keep your comments coming.

Update of September 8, 2007:
HSBC Card Services Inc. plans to cut 213 jobs in October and is closing a Scottsdale center that handles credit card service calls.

6 thoughts on “Clarification on 950 HSBC layoffs

  1. INDIANAPOLIS (AP), August 21, 2007 6:04 PM ET – Banking giant HSBC plans to close a Carmel finance office that employs 600 people due to declining mortgage business. The company told employees late last week it plans to close the office by the middle of 2008. The Carmel location handles mortgage sales across the country. HSBC spokesman Michael Trevino says it also employs underwriting and collections staff.

    It sells mortgages under the HFC and Beneficial brands.

  2. Despite contrary beliefs, the optimization currently under way is a move to decrease uneeded overhead that is cutting into profit margins. This will allow HSBC to better adapt to the changing US economics. Better profit margins allow for pricing decreases and obviously a competitive edge. Put simply a cut in underwriting staff in the carmel area will allow the better than ever technology enabling the complex matrixes in place to do a larger portion of the work formerly only completed by warm bodies. You can look for optimization occuring in oversaturated areas with multiple branches w/i small areas that can be combined into mega branches housing triple and quadruple staffing as that of a typical branch. This too will increase profits and make the company stronger for both consumers, investors, and employees. Some of my very strong concerns at this time are directed more towards the broker market and smaller lenders w/o the backing HSBC brings with it. I am looking to see the broker side significantly decrease which has already begun. What does this mean for small finance employment and investing in the future.

  3. CML Announcement

    Date: August 24, 2007
    To: All CML Employees

    From: Andy Laing, Group Director Servicing Operations
    Connie Rogers, Vice President Servicing Operations
    Marty Milella, Vice President Customer Care

    HSBC Consumer & Mortgage Lending has been reviewing all servicing
    processes across North America as part of the ongoing effort to join up.
    After careful consideration the decision was made to consolidate several
    of our Consumer & Mortgage Lending servicing functions to align our best
    practices and gain efficiencies.

    As a result, several servicing functions that reside in the Chesapeake,
    Virginia facility will be migrated to and supported in the Brandon,
    Florida servicing facility. The following servicing functions have been
    moved effective Monday, August 6, 2007 to Brandon, FL servicing facility:

    Insurance/Optional Insurance
    EZ Pay
    Opt Out

    Please forward any correspondence related to the above mentioned functions
    to the following address:
    636 Grand Regency BLVD.
    Brandon, FL 33510

    Cathy Coushaine, Senior Executive Secretary
    to Connie Rogers, Vice President, Servicing Operations
    HSBC Consumer and Mortgage Lending
    636 Grand Regency Blvd
    Brandon, FL 33510
    Phone: (813) 571-8517
    Cell: (813) 505-9281
    Fax: (813) 571-8501

  4. The information regarding the Carmel layoffs is legitimate and is expected to take place 2nd quarter 2008. Employees will be relocated to either the new corporate hq scheduled for completion next yr., other operations facilities, or will exept severence packages. I would expect this number to be around 450.

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