HSBC can easily be considered a global financial institution.  The London based company parents over 9500 offices throughout 85 countries.    Their two primary US subsidiaries are Household International, Inc and HSBC Bank USA.  Though their US assets measures in the hundreds of billions of dollars, the company is also seeing its share of losses amidst the mortgage collapse.  In 2006, their losses from bad mortgages were nearly 10 billion dollars.  But as we move into the belly of the collapse, their annual losses are even more staggering.

HSBC has been making efforts to mitigate these losses.  One plan of action is to shut down offices and lay off employees.  The most recent lay off is happening in Chesapeake, VA right now as I am writing this blog.  Their mortgage services unit is reducing its staff by 48 employees. 

Forty eight may be a lot, but it is only a small fraction of the HSBC lay offs that have been occurring over the past couple of years and that will be occurring in the future.

Just this May, HSBC laid off 70 San Diegans.  And over the next three months, 400 more HSBC Auto Finance workers will be let go from San Diego area offices. And another 200 Lewisville Texans are on the slate as well. 

In June of this year, 460 employees at White Marsh, MD HSBC call center were notified that their jobs would soon be gone.  Plus, in Jacksonville, FL, another 240 call center jobs are being eliminated.

Late in 2007, HSBC execs decided to completely abandon its Decision One Mortgage company, which specialized in the subprime wholesale lending market.  This move resulted in the loss of 750 jobs throughout South Carolina, North Carolina and Arizona.  However, dumping these risky wholesale lending sections is the growing trend in the finance industry.  WaMu and other major lenders have been doing the same thing.

These kinds of massive lay offs are a pity, but this is what typically happens during a recession.  If you are unfortunate enough to get caught up in one of these “restructurings”, don’t panic.  Just make sure you have a good plan.

First, don’t take it personal.  It’s just business, right?  (That’s kind of easy to say if you are the one handing out the notices.)  When people are laid off, they may sometimes feel as if it was a personal slap in the face.  Though it may feel that way, don’t let this affect you mentally or emotionally.  Because now, more than ever, is the time you must be strong.

Sometimes, people are given severance packages to help them survive until they find a new job.  But if severance pay is not a part of your lay off package, make sure you apply for unemployment right away.

And think about what you want to do.  This can be an excellent time to take a different career path, learn a new trade or become that rock star you always wanted to be.  Also, look for alternative ways to earn income.  

However, this is not the time to begin making hasty financial decisions.  Put the MasterCard away.  Leave the 401K alone (unless you plan to roll it over into an IRA).

In this worsening economy, it is best to have a plan and to be prepared to put that plan in action in the event you are taken by surprise.