HSBC to cut around 30,000 jobs worldwide, posts bumper profits

HSBC will slash 30,000 jobs worldwide over the next two years as part of a major cost-cutting drive aimed at refocusing on Asia, the global banking giant said yesterday as it posted bumper profits.

HSBC revealed in a results statement that it was in the process of cutting its global headcount by 5,000 workers but new chief executive officer Stuart Gulliver revealed that the cost-cutting plans would go deeper after the group announced a large 35 per cent jump in net profits.

“Another 25,000 roles will be eliminated in addition to the 5,000 already announced,” he added.

The cuts represent about 10 per cent of HSBC’s current global workforce but Mr Gulliver stressed that the group would also be recruiting staff by 2013.

“The net number will be a lot smaller than the 30,000,” he told reporters.

HSBC had said it would axe 5,000 jobs as a result of operational restructuring in Latin America, the US, Britain, France and the Middle East. The job cuts are part of the group’s already-announced plans to slash costs by up to $3.5 billion (€2.4 billion) within two years.

The British lender, which survived the 2008 crisis without state aid unlike many of its rivals, announced in a strategic review in May to save $2.5-3.5 billion in costs by 2013.

Mr Gulliver, who took the reins in January, aims to re-invest the enormous cost savings into fast-growing markets around the world, notably Asia as HSBC revealed that its net profit soared 35 per cent to $8.9 billion (€6.2 billion) in the first half compared with the first six months of 2010 on lower tax charges. Pre-tax profits rose 3.3 per cent to $370 million in the reporting period, while total revenues edged ahead to $35.7 billion. “I am pleased with these results, which mark a first step in the right direction on what will be a long journey,” Mr Gulliver said.

No word from HSBC Malta

There was no word yesterday from Malta’s HSBC Bank on the group’s announcement that it plans to axe 30,000 jobs worldwide by 2013, as part of a major cost-cutting drive.

HSBC Malta did not react to the announcement and neither did it reply to questions sent by The Times.