HSBC has started issuing termination notices to more than 20 employees with its insurance subsidiary Axa Singapore, Straits Times (ST) has reported.
The retrenchment exercise comes as HSBC it considers the roles are redundant following its acquisition of Axa Singapore earlier this year.
The affected staff were informed of their last day of their employment with HSBC to be 30 November 2022.
Straits Times reported that the affected employees were given a period of three business days to consider the offer terms of severance payment.
Furthermore, these employees agreed not to lodge complaint with any authority nor pursue any legal proceedings with regards to the termination of the employment.
However, Axa Singapore allows the impacted staff to seek other roles within the company or group from now to November 2022.
A HSBC Life spokesman was quoted by ST as saying: “A small number of roles will be impacted. Our priority is to support colleagues through reskilling and redeployment opportunities within the wider HSBC Group.
“We have announced plans to hire 5,000 wealth roles in Asia by 2025.”
Axa Singapore was acquired for $529m by HSBC Insurance, an indirectly owned subsidiary of HSBC earlier this year. HSBC Life Singapore is the brand name for HSBC Insurance.
Following the completion of the transaction in February 2022, HSBC said it will cease to offer motor and general insurance businesses of AXA Singapore by the middle of this year.
In the same month, HSBC Life Singapore CEO Ho Lee Yen said it would assess the impact of this decision on employees of AXA over a period of three to six months.