HSBC to axe 25,000 jobs despite pre-tax profits rise

Gerald · 08-01-11, 07:22 AM

Banking giant HSBC has said it will cut 25,000 jobs by 2013 and exit operations in 20 countries as it looks to save billions of dollars.

The announcement came as the bank reported pre-tax profits for the first six months of the year of $11.5bn (£7bn), up 3% on the $11.1bn the bank made a year earlier.

HSBC said it did not expect any of the new job cuts to fall in the UK.

The bank had already announced 5,000 job cuts, 700 of which are in the UK.

Together, the job cuts amount to about 10% of HSBC's total workforce, although the company stressed it will also be recruiting staff by 2013.

"The net number will be a lot smaller than the 30,000 [job losses]," said group chief executive Stuart Gulliver.

As well as the job cuts, bank said it is closing its retail banking operations in Russia and Poland and selling three insurance businesses as part of pre-announced plans to save $2.5bn-$3.5bn by 2013.

On Sunday, it announced the sale of 195 US retail branches, primarily in New York, to First Niagara Bank for about $1bn.

Following the better-than-expected results and job cuts announcement, HSBC shares rose 3.4% in early London trading.

"HSBC has set the bar high for those that follow, beating market expectations and planning to streamline its business further," said Richard Hunter at Hargreaves Lansdown Stockbrokers.
'Right direction'

Revenue for the first half was $35.7bn, with double-digit growth in Hong Kong, the rest of Asia Pacific and Latin America. However, US revenues fell.

The bank was profitable in all global regions, helped by a sharp reduction in charges due to bad loans, particularly in the US, which fell to $5.3bn from $7.5bn a year earlier.

http://www.bbc.co.uk/news/business-14362471

Note: 1 August 2011 Last updated at 11:03 GMT

BossMark · 08-01-11, 07:26 AM

Hope one them is the annoying git that keeps phoning me and cant speak a word of English

Gerald · 08-01-11, 07:39 AM

Not at all impossible,

08-01-11, 11:32 AM

HSBC is one to stay away from.

Feuer Frei! · 08-01-11, 11:41 AM

Nothing new there. Banks shedding jobs. As if they weren't making any money, with their billions of green backs of profit each financial year.
But hell, what do you need tellers for anyways. ATM's to dispense cold hard monetos, and internet banking for, well, banking!

Jimbuna · 08-01-11, 04:33 PM

Quote:

Originally Posted by BossMark

Hope one them is the annoying git that keeps phoning me and cant speak a word of English

LOL...spoke to one a couple of days back....left the line open and put the phone next to the live test match coverage on the big screen for a good ten minutes

August · 08-01-11, 05:00 PM

Any employer that keeps people on the payroll although they have no need for them is not a company I would want to invest in.

jumpy · 08-01-11, 05:39 PM

^^

no criticism of your view (I know what you are saying), but therein lies the problem with many larger employers today - it's not about employees or staff and the company anymore, it's all about shareholders and their return.
There should be some half way point, ideally.

08-01-11, 07:22 AM	#1
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	HSBC to axe 25,000 jobs despite pre-tax profits rise Banking giant HSBC has said it will cut 25,000 jobs by 2013 and exit operations in 20 countries as it looks to save billions of dollars. The announcement came as the bank reported pre-tax profits for the first six months of the year of $11.5bn (£7bn), up 3% on the $11.1bn the bank made a year earlier. HSBC said it did not expect any of the new job cuts to fall in the UK. The bank had already announced 5,000 job cuts, 700 of which are in the UK. Together, the job cuts amount to about 10% of HSBC's total workforce, although the company stressed it will also be recruiting staff by 2013. "The net number will be a lot smaller than the 30,000 [job losses]," said group chief executive Stuart Gulliver. As well as the job cuts, bank said it is closing its retail banking operations in Russia and Poland and selling three insurance businesses as part of pre-announced plans to save $2.5bn-$3.5bn by 2013. On Sunday, it announced the sale of 195 US retail branches, primarily in New York, to First Niagara Bank for about $1bn. Following the better-than-expected results and job cuts announcement, HSBC shares rose 3.4% in early London trading. "HSBC has set the bar high for those that follow, beating market expectations and planning to streamline its business further," said Richard Hunter at Hargreaves Lansdown Stockbrokers. 'Right direction' Revenue for the first half was $35.7bn, with double-digit growth in Hong Kong, the rest of Asia Pacific and Latin America. However, US revenues fell. The bank was profitable in all global regions, helped by a sharp reduction in charges due to bad loans, particularly in the US, which fell to $5.3bn from $7.5bn a year earlier. http://www.bbc.co.uk/news/business-14362471 Note: 1 August 2011 Last updated at 11:03 GMT __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie

08-01-11, 07:26 AM	#2
BossMark Fleet Admiral Join Date: May 2011 Location: Leeds, West Yorkshire Posts: 15,272 Downloads: 278 Uploads: 0	Hope one them is the annoying git that keeps phoning me and cant speak a word of English __________________ Never trust the Tories look what Thatcher and Major did in the 80s and 90s and look what the wicked witch May is doing now doing now

08-01-11, 07:39 AM	#3
Gerald SUBSIM Newsman Join Date: May 2008 Location: Close to sea Posts: 24,254 Downloads: 553 Uploads: 0	Not at all impossible, __________________ Nothing in life is to be feard,it is only to be understood. Marie Curie

08-01-11, 11:41 AM	#5
Feuer Frei! Navy Seal Join Date: Sep 2009 Location: Valhalla Posts: 5,295 Downloads: 141 Uploads: 17	Nothing new there. Banks shedding jobs. As if they weren't making any money, with their billions of green backs of profit each financial year. But hell, what do you need tellers for anyways. ATM's to dispense cold hard monetos, and internet banking for, well, banking! __________________ "History is the lies that the victors agree on"- Napoleon LINK TO MY SH 3 MODS

08-01-11, 05:00 PM	#7
August Wayfaring Stranger Join Date: Apr 2005 Location: Massachusetts Posts: 23,197 Downloads: 0 Uploads: 0	Any employer that keeps people on the payroll although they have no need for them is not a company I would want to invest in. __________________ Flanked by life and the funeral pyre. Putting on a show for you to see.

08-01-11, 11:32 AM	#4
sidslotm Stowaway Posts: n/a Downloads: Uploads:	HSBC is one to stay away from.

08-01-11, 05:39 PM	#8
jumpy Admiral Join Date: May 2003 Location: Midlands, UK Posts: 2,139 Downloads: 22 Uploads: 0	^^ no criticism of your view (I know what you are saying), but therein lies the problem with many larger employers today - it's not about employees or staff and the company anymore, it's all about shareholders and their return. There should be some half way point, ideally. __________________ when you’ve been so long in the desert, any water, no matter how brackish, looks like life