HSBC Holdings is set to retrench around 90 junior and middle management employees in the United Arab Emirates, apparently due to unfavorable conditions of the economic market. The bank, having around 4000 employees in UAE, has offered six months' salary as a severance package for the redundant employees.

Joel Farnworth, HSBC Middle East's head of human resources said: "We don't confirm absolute numbers but let me say that the figure is relatively accurate. It's less than two percent of the workforce in the UAE." He held that the review of workforce strength is a routine process to meet banks requirements and to make the system efficient.

Banks in UAE are apprehensive of rise in defaults, with the recession-hit worldwide scenario also being unfavorable, as indicated by the recent job cuts by leading banks and financial institutions.

Mr. Farnworth further added: "A strong, well capitalized and profitable bank like HSBC can stay open for business, respond to the changing needs of its customers and continue to serve them even when times are tough."