Hang Seng Bank (HKG:0011) is cutting the number of its employees as part of parent HSBC's (HKG:0005) restructuring efforts, the South China Morning Post reported Wednesday, citing two separate sources.

The bank started to inform employees across various departments, such as information technology and corporate communications, over the past few weeks regarding the layoffs, the report said.

Also included in the layoffs are staff from index compiler Hang Seng Indexes and other units that could be hit by consolidation, the report said.

The sources did not say how many would be affected by the cuts, but some departments lost up to one-fifth of their staff, with the most hit seeing their numbers halved, the SCMP said.

The layoffs were surprising as local banks in Hong Kong do not tend to lay off staff and keep their employee count stable even during previous financial crises, the report said, citing Everbright Securities International strategist Kenny Ng Lai-yin.

HSBC owns 62.14% of Hang Seng Bank.

An HSBC representative referred MT Newswires to Hang Seng Bank for direct comment.

Hang Seng Bank did not immediately respond to a request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)