Tuesday 9 June 2015

HSBC to axe thousands of UK jobs in cost cutting drive

Otmane El Rhazi from Mindful Money » Shares.

HSBC is to shed some 8,000 jobs in the UK in a bid to slash costs.

Europe’s biggest bank presently has around 48,000 UK employees and is planning to cut staff from both its retail and investment banking division according to BBC news.

In a statement, HSBC said it was “undertaking a significant reshaping of its business portfolio”.  It intends to sell its operations in Turkey and Brazil, but plans to maintain a presence in the latter “to serve large corporate clients with respect to their international needs”.

The bank is targeting annual cost-saving initiatives of $4.5-5.0bn by 2017, with estimated costs to achieve these savings of $4.0-4.5bn over that period.

The bank added that it also plans to “ringfence” its UK operations. However it said it was also looking to boost its investments in China.

In a statement, HSBC chief executive Stuart Gulliver said: “We recognise that the world has changed and we need to change with it.

“The world is increasingly connected, with Asia expected to show high growth and become the centre of global trade over the next decade. I am confident that our actions will allow us to capture expected future growth opportunities and deliver further value to shareholders.”

No comments:

Post a Comment