HSBC Bank USA will close a 450-person office in New Castle, Del., and plans to relocate an unspecified number of those jobs to the Buffalo Niagara region.
HSBC plans to make the transition mainly over the next year, and finish closing the Delaware office by the end of 2018. About 400 of those jobs will be moved in stages to other HSBC locations, primarily Chicago and Buffalo, while the other employees will be offered opportunities in Delaware to work remotely, said Rob Sherman, an HSBC spokesman.
It’s not yet clear how many of the jobs will be shifted to Buffalo, or how soon that will happen, he said. The Delaware location’s employees work in three areas: internal operations, financial crimes risk, and global liquidity and cash management.
The bank in the past has shifted some jobs from other markets to Buffalo and Chicago, citing those cities’ appeal as lower-cost markets within HSBC’s system. In a 2015 interview, HSBC Bank USA CEO Patrick Burke also praised the bank’s experienced work force in the Buffalo area as another reason to move jobs here.
Even without a branch network in Buffalo, the bank has about 3,000 employees in back-office operations in downtown Buffalo and Depew. The bank’s employment level has stayed around that level, with some cuts and some additions, since HSBC finished selling off its upstate branch network in 2012.
HSBC also moved out of the downtown tower that once bore its name, but went on to make $35 million worth of upgrades to its two other area locations.