BERN: HSBC announced that will cut up to 25,000 jobs, accounting for 10% of its workforce, in a major attempt to reduce costs by chief executive Stuart Gulliver. The job cuts were announced in the company’s investor update on Tuesday (9 June), and will come on top of job cuts from selling HSBC’s Brazil and Turkey businesses.
The redundancies are part of Gulliver and chief operating officer Mark Maguire’s effort to cut up to $5bn (£3.27bn, €4.43bn) of costs by 2017 to increase margins. Between 7,000 and 8,000 cuts are expected to be in Britain, accounting for almost 17% of the company’s UK staff.
Between 2011 and 2014, the Bank cut 37,000 jobs and 25,000 jobs will be cut in the amputation of HSBC’s Brazil and Turkey arms. Though the company said new available positions might offset some of the jobs, this means HSBC will have cut almost a third of its total workforce since 2010.
HSBC has been forced to pay billions in fines over the last years for misconduct including alleged foreign exchange rigging, tax avoidance and US money laundering.
