HSBC to save $5b by sacking 25,000 workers globally

Banking company HSBC says it is carrying out a global restructuring, that will see it withdrawing from Brazil and Turkey, and cutting off about 25,000 jobs, even as it considers abandoning London as its headquarters.

In a statement to the Hong Kong stock exchange on Tuesday, HSBC said it intends the restructure will save it $5bn in annual costs within two years.

In a statement, Stuart Gulliver, the chief executive, said the bank was undertaking “a significant reshaping of its business portfolio.”

“It is redeploying resources to capture expected future growth opportunities and adapting to structural changes in the operating climate,” he said.

The bank would aim to save $4.5bn to $5bn in annual costs by 2017, including selling its businesses in Turkey and Brazil, the statement said, adding it would step up investments in Asia.

It also said it expected to complete a review of where to locate its headquarters by the end of this year.

The UK has imposed stricter controls on the banking sector since the 2008 global financial crisis that have entailed greater costs.

An investor update report from HSBC on Tuesday said there would be a 10 percent reduction in jobs, totalling between 22,000 and 25,000.

Ripples… without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now