More like this
HSBC to sack 25,000 staff despite huge pre-tax profits
Business digest: Long term strategy means mass redundancies as bank looks East
HSBC may have made pre-tax profits of $11.5bn in the first half of 2011, but that hasn't stopped the bank announcing that 25,000 people will lose their jobs in the next two-and-a-half years.
Announcing the profits, which exceeded City predictions by around $600m, HSBC said that the "role reductions" would be made by 2013. They come on top of 5,000 job cuts already announced.
Stuart Gulliver, HSBC's chief executive since the beginning of the year, said most of the cuts would hit back office and support staff. "We have created an unnecessarily large bureaucracy," he said.
The move is part of HSBC's wider strategy to expand in Asia while decreasing its focus on less profitable areas. The bank's overall headcount of 300,000 will remain flat, with redundancies being balanced with new recruitment in priority countries.
Read a full report in the Daily Telegraph. ·
Comments are now closed on this article
Comments
" "We have created an unnecessarily large bureaucracy" which enabled this large rise in profits but we are too short sighted and greedy to understand the value of our people other than the investment bankers who not only risk their company but the country with their addition to risky gambling activities."
Most Boards just don't get it yet.