HSBC cut more jobs

[Feral Fox]

It seems a lot of big firms are cutting back again at the moment with this following on hot on the heels of Boots announcement.

 

Another dip in the economy?

 

HSBC has said that it plans to cut thousands of jobs in the UK and up to 25,000 posts worldwide by the end of 2017, as Europe’s largest bank refocuses on faster-growing Asian markets.

 

Sky News City Editor Mark Kleinman said HSBC would not disclose the precise number of job cuts in the UK but bank insiders said the figure in its home market would be between "7,000 to 8,000".

 

Sky News first revealed last week that major job cuts were on HSBC's agenda.

 

The bank has 47,500 UK-based employees and around 266,000 workers globally.

 

In an update to investors, HSBC said it would cut between 22,000 and 25,000 full-time equivalent roles during the next two-and-a-half years, although, with reinvestment taken into account, the net jobs reduction will be in the region of 20,000, according to insiders.

 

The bank also raised the prospect of significant branch closures in the UK, telling investors that it was targeting a 12% reduction in branch numbers across its top seven markets.

 

In the UK, HSBC operates just over 1,050 branches, with 20 closures already taking place this year and 20 more in the pipeline.

 

Sources said the 12% target was not an average across the top seven countries and refused to say how many branches might close in the UK.

 

In a renewed effort to simplify HSBC and address the poor returns at its investment bank, Stuart Gulliver, the chief executive, said he was targeting $5bn in cost-savings by the end of 2017.

 

HSBC also confirmed it was looking to sell its business in Turkey and the bulk of its Brazilian operations.

 

Headquartered in the UK since the early 1990s, HSBC said that a review of whether to relocate would be completed by the end of the year.

 

The issue of HSBC’s domicile has been thrown sharply into focus by a sudden pre-Election hike in the Bank Levy, which imposes a charge on the global balance sheets of UK-based lenders.

 

HSBC pays by far the largest sum towards the levy, prompting complaints from major investors that it has eroded Mr Gulliver’s ability to continue a progressive dividend policy.

 

The bank said on Tuesday that factors including tax environment, the scale of its existing presence, long-term stability and government policy “in support of growth and development of financial services sector†would all influence its decision on whether to relocate.

 

The bank declined to comment on the range of alternative locations under consideration, although Hong Kong - where it was headquartered between 1865 and its move to London - is widely seen as the likeliest destination.

 

HSBC also declined to say whether it was planning to spin off its UK retail operations, which Mr Gulliver has hinted may be considered because of new laws forcing universal banking groups to separate their retail and investment banking arms.

 

Earlier this year, HSBC said it would move the head office of its UK ring-fenced arm from London to Birmingham, raising speculation that it may rebrand the high street branch network under the Midland name it acquired nearly 25 years ago.

 

The group appeared to reinforce that speculation in its investor presentation, leaving HSBC’s name absent from a slide detailing plans for the UK operations.

 

While investors have largely backed his strategy of simplifying HSBC's structure, the journey under Mr Gulliver’s leadership has been bumpy, with fines for misconduct dating back to the period before he took over totalling billions of pounds.

 

It continues to face sizeable penalties from US authorities for attempting to manipulate foreign exchange markets, while a number of regulators continue to probe the Swiss tax evasion scandal which re-emerged earlier this year.

[DangerousSausage]

Banks across the continent are cutting back, it's not just a UK thing. As people move towards internet banking, retail branches are used less and eventually closed.

 

Of course, HSBC has its own problems, not least the billions in fines it has to pay for foreign exchange rigging. And as usual it's the ordinary staff who face the chop.

[Chris Website URL Visit Site 𝕏 fmcj10 Instagram fmcj10]

I literally blame the Tories, it shows their manipulation world wide this does.

Oh and I bet not a single person goes from roles whereby they should have gone after the recession. It will be all the poor souls trying to get up and whom do a decent job with what they can. Horrible really

[Dripsey3]

Banks don't like a lot of regulations but as the financial crashed proved, you have to have strong regulation or the banks will run riot. Moving to Asia means less regulation so HSBC were always going to go there. HSBC have had a few questionable practices to put it nicely.

[AmericanPie]

Internet banking is a good think but only companies like egg keep staff on. HSBC is one of the worst banking groups in my opinion.

[liampie]

did hsbc make statements during the recession about being the only back not to have made staff unemployed? if i am right, it seems even more sad now.

[PTID1862]

They are going home....