HSBC, one of Europe’s biggest banks will undergo massive restructuring over the next two years in order to save money. The bank is planning to cut 8,000 jobs in the UK as it tries to reduce costs.
Since the 2008 economic crash, banks are being heavily regulated – which means profits are not as great as before. This, coupled with the government’s banking levy has meant that banks are contributing more cash. HSBC contribute £700m towards the banking levy; which is why they are looking to reduce costs and even relocate back to its home in Asia.
25,000 jobs will be cut world wide in an effort to cut up to £3.25 billion in costs. It will also sell operations in Turkey and Brazil.
These cuts will come from the investment and retail sides of the banking operation, amounting to 10% of HSBC’s 266,000 employees.
HSBC has said that it will need to cut $5 billion (£3.25 billion) in the next two years.
“Asia [is] expected to show high growth and become the centre of global trade over the next decade. Our actions will allow us to capture expected future growth opportunities,” Stuart Gulliver, CEO said.
Daniel Turner & Avinash Bhunjun