HSBC, Europe's largest bank, has announced plans to cut 8,000 jobs in the UK as part of a global cost-saving initiative. The bank, which employs 48,000 people in the UK, will reduce its workforce across both retail and investment banking operations. Chief executive Stuart Gulliver stated that the job losses would be achieved through natural attrition, with staff turnover currently at around 3,000 per year.
Globally, HSBC aims to cut up to 25,000 jobs, representing nearly 10% of its total workforce of 266,000. The bank also plans to rebrand its UK High Street branches, with potential names including the revival of the Midland Bank brand or adopting the name of its online bank, First Direct. The move comes as HSBC is required by new government rules to formally separate its retail and investment banking operations.
Dominic Hook, national officer with the union Unite, called on HSBC to achieve job cuts through voluntary means and natural attrition. He expressed disappointment that staff would bear the cost of the bank's recovery from recent scandals. The number of UK branches is expected to fall by about 100 from the current 1,057.
The job cuts were announced ahead of a presentation by Gulliver to investors and analysts, outlining a 10-point plan to cut costs by up to $5bn (£3.25bn) and increase investment in Asia, particularly in China. HSBC also plans to sell assets in Turkey and Brazil, while continuing to serve large corporate clients there. The bank will decide on whether to move its headquarters out of the UK by the end of the year, with Hong Kong being a potential location.
