HSBC, who is Europe’s biggest bank, plans to cut 8,000 jobs in the UK because it wants to reduce costs. Job cuts will be made in both its retail and banking operations and so the 48,000 UK workers who are already at the bank could be at risk. News has it that the job cuts are because HSBC is attempting to simplify its business.
In terms of the matter on a global scale, a total of 25,000 jobs could be cut, which means that around 10% of HSBC’s 266,000 workers will have to leave their job. The bank said on Tuesday that it would sell businesses in Turkey and Brazil.
The bank will rebrand its UK High Street branches but has not decided upon a new name yet. There are several options, which include reviving the Midland Bank brand, which it bought in 1992 or alternatively, taking the name of its UK online bank called First Direct.
Stuart Gulliver first took up the role of Group Chief Executive of HSBC in 2011 and will give a presentation to investors and analysts. This will be his second major strategy plan since he first started. The 10-point plan hopes to cut costs by up to $5, which is £3.25 billion, and also increase investment in Asia. This aims to invest mostly into China. Gulliver has guaranteed that he wanted to make sure that customers made a distinction between HSBCs investment and retail banking operations. From this, the new government has forced the bank to formally separate the two businesses because of new rules.
HSBC’s Hong Kong-listed shares remain down 9% over the last 12 months, however shares did rise almost 1% once the announcement had been made. By the end of the year, HSBC will have made a decision on whether to move its headquarters out of the UK. In addition to this, since it announced the review in April, rumour has it that the British bank may relocate its headquarters to Hong Kong.