HSBC investment banking unit in France has decided to slash 38% of positions by the end of 2021, HSBC French union said.

The bank is expected to lay off 255 of 678 employees at its French global banking and markets (GBM) as part of its efforts to cut costs.

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According to the union’s website, already 20 people have been laid off so far.

The union said that although HSBC expects voluntary departures. However, in the absence of adequate volunteers, the bank may have to lay off its employees for economic reasons.

In an emailed statement, HSBC said that it aims to “reallocate capital and resources to overcome the structural challenges in this business, to focus on profitable activities, reduce the cost base and thus safeguard our competitiveness.”

There will be two waves of departures; the first wave of departures will begin in November and end in May 2021.

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The second wave of layoffs will occur between June and December 2021.

Major redundancies will happen in the first quarter of 2021, the union said.

During this time, HSBC will check whether there are enough voluntary exits or if economic layoffs are necessary.

Trade unions will negotiate the terms of the voluntary layoffs. These negotiations will take place between 16 July and 25 September 2020.

Last month, HSBC resumed its initial plans to axe 35,000 jobs that it had postponed due to the Covid-19 pandemic.

The bank is also mulling the option of investing in wealth management and insurance business in mainland China.

HSBC also carried out a restructure that includes the integration of its retail banking, wealth management, and global private banking units.