News

HSBC boss to announce thousands of job cuts

HSBC Holdings Plc, Europe’s largest bank, will announce a plan next week to cut thousands of jobs, Sky News reported, citing unidentified people close to the matter.

It was the Chief Executive, Stuart Gulliver, who outlined the need for 25,000 job cuts from a global workforce that then stood at 296,000. Another 10,000-20,000 cuts are reported to be on the cards as Gulliver attempts to pacify investors by reducing costs in an effort to bolster profitability. He is also expected to use the strategy day on 9 June to provide an update on plans to further retrench internationally, including from Brazil and Turkey[1].

Bloomberg Business has also reported that the bank also is threatening to leave the U.K. over tax increases and the introduction of some of the toughest regulations in the world. Last year the British levy imposed on the firm’s global balance sheets cost HSBC 750 million pounds ($1.1 billion), the most among U.K. lenders[2].

According to Sky News, Hong Kong, where HSBC was domiciled until its takeover of the Midland Bank in the early 1980s, is seen by analysts as the likeliest destination if it does decide to relocate.

[1] Jill Treanor, The Guardian
[2] David Scheer, www.bloomberg .com