HSBC cost-cutting: Net job loss is 2,217 in UK , 550 in India

The axe is expected to fall on nearly 4 percent of the bank's 52000-strong UK workforce in a drive to slash costs.

FP Staff April 26, 2012 16:44:46 IST
HSBC cost-cutting: Net job loss is 2,217 in UK , 550 in India

HSBC is cutting more than 2,200 jobs in Britain as part of its drive to slash costs and boost profitability in the face of a changing banking landscape.

HSBC costcutting Net job loss is 2217 in UK  550 in India

Reuters

Unite union said 3,167 roles would be impacted by the cuts, but HSBC said almost 1,000 staff would be redeployed or other positions would be created elsewhere, and the net job loss would be 2,217.

Further details will be released later on Thursday.

Another report in the Economic Times today pointed out that HSBC India has also undertaken a massive layoff exercise in Hyderabad and Pune. The axe has fallen on over 350 employees at HSBC's Pune centres, while around 200 employees ranging from assistant manager to vice presidents have been asked to quit from its centres in Hyderabad alone, said the ET report.

The layoff process is expected to continue till April 25 - that's when the bank's monthly salary calculation cycle ends - and will be completed by April 30, sources told DNA.

"The HSBC Group is going through a global programme that is aimed at improving efficiency, increasing our revenue capability and ensuring our long-term, sustainable growth. HSBC India, as part of the group, will also be implementing this global programme," Rajesh Joshi, HSBC spokesperson told Times of India.

Speculation is that, apart from broking, HSBC is planning to shut its retail and insurance business in the country, but a company spokesperson said there are no such plans.

Reuters reported on Wednesday that about 2,000 jobs would go, under Chief Executive Stuart Gulliver's plan to shed 30,000 jobs globally by the end of 2013, and to streamline the bank for changes in British regulation.

Over 80,000 banking jobs have been shed in Britain since the end of 2008. Most have come at Lloyds and Royal Bank of Scotland which have axed about 32,000 and 25,000 UK jobs, respectively.

With inputs from Reuters

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