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HSBC to cut 8,000 UK jobs as part of 25k global reduction

by: Natalie Kenway
  • 09/06/2015
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HSBC has confirmed it is planning to cut up to 25,000 jobs, including up to 8,000 posts in the UK, to target annual savings of up to $5bn (£3.3.bn).

The UK bank has confirmed it is reshaping the business, following reports last week that it would cut 20,000 positions.

The number of full-time roles which may be cut is equal to a reduction of almost 10% of the bank’s 266,000 workforce, the bank said today in a strategy update.

Cuts to its UK retail and investment banking staff numbers will see the number of domestic jobs drop by about 8,000, according to the FT, as the bank seeks to slash costs.

It will target annual cost-saving initiatives of $4.5bn-$5bn by 2017.

These initiatives will reduce total headcount by 22,000 to 25,000, the bank said in the investor update.

Outlining the bank’s plans, chief executive Stuart Gulliver (pictured), also said it will ring-fence its UK banking arm and conclude its review of its domicile by the end of the year.

In April, the bank launched a review of its UK domicile in light of increased levies and a potential exit from the European Union.

HSBC also revealed it is aiming to reduce risk-weighted assets by at least a quarter, or about $290bn. But the plans also revealed Gulliver wants to boost Asia’s share from 33% to more than 40%.

In a statement to the stock exchange, the bank said it would be accelerating investments specifically in “both the Pearl River Delta in Guangdong province, China, and in the Asean region”.

Other plans were to target a return on equity of more than 10% by 2017 and deliver above-GDP revenue growth from its international network through investment in foreign exchange, payments and cash management, and global trade and receivables finance.

HSBC has already begun disposing parts of its Brazilian and Turkish operations, hoping to raise up to $5bn but said it would “maintain a presence in Brazil to serve large corporate clients with respect to their international needs”.

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