HSBC job cuts confirmed: 2,200 posts go as regulations bite
Experts say bank is responding to government rules which make selling investments less profitable
HSBC bank is to shed 2,200 jobs in the UK over the next 18 months as part of a restructuring that will see 3,100 posts cut, with around 900 of the affected workers redeployed to new roles.
The move is part of a plan to cut 30,000 jobs worldwide that HSBC announced last year as it aims to save £2.2bn by 2013. HSBC employs 52,000 staff in the UK.
Hardest hit will be management positions on HSBC's retail banking side, The Independent reports. The Financial Times says that branch-based investment advisers will also be targeted. That, it reports, is a response to changes in government regulation that will make the sale of financial products to customers less profitable because banks will be unable to charge commission.
Brian Robertson, chief executive of HSBC, said the restructuring was aimed at reducing bureaucracy.
"These changes will enhance our efficiency as detailed in the strategy we announced last May and they will also help ensure our continued profitability in the face of the changing regulatory landscape, " he said.
The Unite union said it would fight the job cuts and was in talks with HSBC. A spokesman said: "Bank staff deserve so much more than this awful treatment by HSBC or any other employer. How can this bank consider staff cuts when it was the workforce that delivered it a profit of £13.8bn last year?
"The hypocrisy of CEO Stuart Gulliver taking home £8m, while talking up job losses in order to save money, will not be lost on the workforce." ·