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article imageHSBC announces 30,000 job cuts

By Samuel Okocha     Aug 1, 2011 in Business
Despite posting an impressive half of year profits of 7 billion pounds, Europe's biggest bank HSBC on Monday announced a massive 30,000 job losses, the highest in the banking sector in the last two years.
AFP reports that the job cuts are part of the banking giant's already-announced plans to slash costs by up to $3.5 billion [2.4 billion euros] within two years.
The worldwide cost-cutting plan is to be implemented by 2013 while the bank currently processes the layoff of 5,000 members of its workforce, going by UK's dailymail report.
Chief executive Stuart Gulliver has warned the cuts would go deeper but stressed the 30,000 figure excludes HSBC's future expansion plans.
"There will be further job cuts," AFP quoted Gulliver as telling journalists on a conference call after the group announced a 35-percent raise in net profits. "Another 25,000 roles will be eliminated in addition to the 5,000 already announced," he added.
HSBC employs around 335,000 people worldwide with 52,000 staff in the UK where the company has over 1,000 branches.
According to Mr. Gulliver, the job cuts which represents 10 percent of HSBC's current global workforce, would be targeted at back office, head office and support operations in a bid to reduce overheads.
The 30,000 reduction is said to be a gross figure with expected additions in regions such as Asia and Latin America, where HSBC saw the strongest revenue growth in the first half.
HSBC is the latest bank to announce job cuts which beats the 28,000 cuts announced by RBS. Credit Suisse had reportedly said it planned to eliminate 2,000 positions or 4 percent of its global jobs while Goldman Sachs and Morgan Stanley are also reducing their head counts.
The cuts are reportedly aimed at helping the banks improve returns in the face of slower economic growth and a stricter regulatory environment.
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