HSBC has slashed 1,100 jobs in its investment banking division, including 500 front and back office jobs in London.
The rest of the jobs have gone in the US and in mainland Europe. The cuts represent around 4% of HSBC's total workforce across its global banking and markets division.
The cuts are in response to the global financial markets downturn and as HSBC turn to focus on emerging investment markets in Asia and the Middle East.
Since the credit crisis started, HSBC has been linked to possible takeovers of troubled rivals Bear Stearns, Lehman Brothers and Morgan Stanley.