Business

Tuesday 28 February 2017

HSBC to cut up to 50,000 jobs worldwide

HSBC is planning thousands of layoffs worldwide
HSBC is planning thousands of layoffs worldwide

Global bank HSBC has said it is to slash up to 50,000 jobs globally as part of cost-saving measures.

The announcement to the Hong Kong stock exchange came ahead of a presentation to investors and analysts when Chief Executive Stuart Gulliver will give more detail on his second major strategic plan since he took the helm at the start of 2011.

The bank, which employs about 450 people in Ireland, has also announced that it intends to make savings worth $5 billion (€4.4bn) by 2017, and also sell its operations in Turkey and Brazil.

The bank is also considering abandoning London as its headquarters.

The announcements were made in a statement to the Hong Kong stock exchange.

"HSBC is now undertaking a significant reshaping of its business portfolio," the statement said.

It added that the bank was "redeploying resources to capture expected future growth opportunities".

The cuts are the latest in a series of heavy staff reductions and will leave the bank with around 208,000 full-time equivalent staff, down from 295,000 at the end of 2010 and 258,000 at the end of 2014.

However the cuts, to be completed by 2017, will be followed by some hiring in growth businesses and the bank's compliance division, HSBC said without providing details on how many people will be recruited.

The bank set its new target for return on equity at greater than 10 percent by 2017, down from its previous target of 12-15 percent by 2016.

It confirmed the planned sale of its units in Turkey and Brazil, adding it would keep a presence in the latter to serve corporate clients.

Despite the changes not going as far as some analysts hoped, HSBC shares rose 1.5 percent in Hong Kong following the announcement, outperforming the Hang Seng Index, HSI which fell 1 percent on Tuesday morning.

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