Business

Tuesday 15 October 2019

HSBC to cut costs by $3bn and may axe further 14,000 jobs

HSBC plans to cut annual costs by up to another $3bn and may axe a further 14,000 jobs as Europe's biggest bank strives to drive profits in the face of sluggish growth outside Asia.

The bank has a major operation in Ireland where it provides hedge fund and corporate banking services from its office in Grand Canal Dock in Dublin.

HSBC's new cost-cutting drive, stretching out to 2016, will enable the bank to boost capital and grow dividends, but chief executive Stuart Gulliver softened a key target to get costs to below 52pc of revenue. The new goal is to keep the ratio near 55pc.

Mr Gulliver has already sliced $4bn off annual costs and culled 46,000 staff under an overhaul he began when he became CEO at the start of 2011.

The bank said employee numbers could fall to between 240,000 and 250,000, from 261,000 at the end of 2012 and 254,000 when current disposals and announced cuts take effect.

"I was looking for an ongoing battle against costs and the number they have put on it is bigger than I would have thought, given that they have taken out $4bn already," said Chris Wheeler, analyst with Mediobanca. (Reuters)

Irish Independent

Also in Business