HSBC is cutting at least 20 jobs from its corporate finance division in the latest sign it is dropping John Studzinski's plan to build a global investment banking business.

The bank is shutting its general industrials and technology, media and telecoms investment banking teams. This follows similar cuts earlier in the year and the departure in May of Studzinski, who spent hundreds of millions trying to turn HSBC into a top-tier global investment bank. TMT and industrials managing directors, including Gordon Eichhorst, former head of technology banking at Morgan Stanley, Axel Majert, former co-head of European telecoms at Deutsche Bank, and Jean-Michel Prach, previously head of Eurozone advisory at HSBC, could leave the bank. About 20 bankers could be affected, of which eight are on the telecoms teams with a further six in general industrials. The departures are the latest in a steady flow since Studzinski left HSBC after the bank folded the corporate finance and advisory unit into global banking. He now runs the global advisory business at private equity firm Blackstone. David Livingstone, head of European investment banking, will leave HSBC at the end of the year, and more than a dozen bankers have left. In May, HSBC closed several global sector teams, including technology and real estate, opting to run them on a regional basis or as part of the industrials group. The cuts have raised concerns that bonuses at HSBC will fall short of expectations. One headhunter said: "It is clear that, if they do not pay at or above market rates, there will be an exodus of the remaining quality bankers. There is not an HSBC banker I have spoken to who is not hedging himself by lining up options for early 2007." HSBC announces bonuses at the end of January. A source close to the bank said the bankers are in consultations about alternative roles. HSBC declined to comment.