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HSBC to cut 30,000 jobs worldwide by 2013

"Five thousand roles had already gone so far this year and another 25,000 would need to be removed from the 296,000 global workforce," bank's Chief executive Stuart Gulliver was quoted as saying by 'The Guardian'.

twitter-logoPTI | August 1, 2011 | Updated 18:24 IST

Global banking major HSBC on Monday said it plans to slash around 30,000 jobs worldwide by the end of 2013, as part of a broader cost-cutting drive.

"Five thousand roles had already gone so far this year and another 25,000 would need to be removed from the 296,000 global workforce," bank's Chief executive Stuart Gulliver was quoted as saying by 'The Guardian'.

"There will be something like 25,000 roles eliminated between now and the end of 2013," he said.

Gulliver had signalled in May that roles would be shed as he set about achieving $3.5 billion of savings within three years as he aims to bolster the bank's return on equity to 12-15 per cent from 9.5 per cent in 2010, The Guardian reported.

"The job cuts would be targeted at back office, head office and support operations in a bid to reduce overheads, stressing that HSBC has a staff turnover rate of between 10 and 15 per cent which would account for some of the reductions," Channel 4 News quoted Gulliver.

HSBC Holdings Plc reported first-half pre-tax profit of $11.47 billion compared with $11.10 billion last year.

HSBC on Sunday  said it would sell 195 US branches to First Niagara Financial for about $1 billion in cash, and close another 13 of the 470 sites it had.

The bank employs more than 300,000 people worldwide.

Swiss banking major Credit Suisse, which has posted over 50 per cent decline in quarterly profit, is also planning to axe about 2,000 jobs worldwide, as part of aggressive cost-cutting measures.

HSBC is the latest to join a growing list of global entities, including Cisco, Research In Motion (RIM) and Nokia, who have earlier announced layoffs amid tough business conditions.

Blackberry-maker Research In Motion (RIM) announced 2,000 job cuts while Cisco unveiled plans to cut about 6,500 jobs.


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