HSBC is poised to cut between 22,000 and 25,000 jobs – nearly 10pc of the bank’s 266,000 workforce – as it attempts to cut costs by up to $5bn over the next two years.
As many as 8,000 of those job losses will be in the UK, where the bank employs around 48,000 staff.
The bank, outlining a plan to improve profits on Tuesday morning, also said it would also sell its underperforming operations in Brazil and Turkey, while much of the savings will come in its struggling markets division. The bank employs around 25,000 people in the two countries, meaning in total, the bank plans to cut its headcount by as much as 50,000.
The announcement from the bank comes ahead of its highly-anticipated investor day, in which HSBC will unveil more details on how it plans to improve profits. Shares in the bank fell after the announcement, however.
HSBC is considering moving its headquarters from the UK to Hong Kong after more than two decades, and updated shareholders on its review into the matter on Tuesday. It outlined 11 criteria on which it was basing the review, including the “ability to attract and retain top talent”, the tax system and government policy “in support of growth and development of [the] financial services sector”.
On Tuesday, HSBC said its board would make a decision by the end of the year, and would then be put to shareholders if necessary. The bank is hoping to achieve a return on equity, a measure of bank profitability, of above 10pc, which it has rarely achieved in recent years.
HSBC chief executive Stuart Gulliver said: “HSBC has an unrivalled global position: access to high growth markets; a diversified universal banking model with strong funding and a low risk profile; and strong internal capital generation with industry leading dividends. 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.”
So we can now assume that more branches will be closed and those that remain will have lower staffing levels. More and more self-service machines will be introduced and the chance of even remotely speaking to a “human being” in a branch will disappear completely.
When will these financial scavengers running these institutions get it through their brains (and I use that term loosely) that what the public wants is service, by human beings……..it is noticeable that some of the leading supermarkets are opening more and more checkout lines as the public dislike “self-service”
But of course all of this is about profitability for the shareholders and screw “jo public”