HSBC is planning a radical overhaul of its global equities business, which is likely to lead to the loss of hundreds of jobs, according to current and former senior employees. The restructuring is to be more dramatic than originally thought and will result in a big increase in the use of HSBC's balance sheet and a retreat from its traditional agency broking business, an area in which the bank once dominated the London market.

The bank is seeking voluntary redundancies across the board in equities, according to informed sources, though it will not pay off all those who step forward. However, HSBC is also planning compulsory redundancies. Sales staff and analysts look particularly at risk, as the bank reduces its research coverage of individual stocks in favour of sector analysis. Hundreds of employees will either be retrained or replaced as part of the review, which is expected to be concluded by the end of the year.