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HSBC plans to cut 8,000 jobs in the UK in savings drive | |
(35 minutes later) | |
HSBC, Europe's biggest bank, is planning to cut 8,000 jobs in the UK as it tries to reduce costs and simplify its business. | |
The cuts will affect both the retail banking operations and the investment bank. | |
A total of 25,000 jobs could be axed globally, meaning close to 10% of HSBC's 266,000 workers will go. | |
The bank will also 'ringfence' its UK operations and sell businesses in Turkey and Brazil, it said on Tuesday. | |
The news comes ahead of a presentation that chief executive Stuart Gulliver will give to investors and analysts in his second major strategy plan since taking up the role in 2011. | |
"We recognise that the world has changed and we need to change with it. That is why we are outlining the following... strategic actions that will further transform our organisation," he said in a statement. | "We recognise that the world has changed and we need to change with it. That is why we are outlining the following... strategic actions that will further transform our organisation," he said in a statement. |
The 10-point plan aims to cut costs by up to $5bn (£3.25bn) and increase investment in Asia - particularly in China. | |
"Asia [is] expected to show high growth and become the centre of global trade over the next decade," Mr Gulliver said. "Our actions will allow us to capture expected future growth opportunities." | |
HSBC's Hong Kong-listed shares rose almost 1% following the announcement, but remain down 9% over the past 12 months. | |
Headquarters decision | |
James Antos, analyst at Mizuho Securities Asia, said the plan would not restore investor confidence in HSBC. | |
"Slaughtering the staff is not necessarily the solution unless management makes the bank considerably less complex," he said. | |
HSBC said it would make a decision on whether to move its headquarters out of the UK by the end of the year. | |
There has been speculation that the British bank may relocate its headquarters to Hong Kong since it announced the review in April. |