HSBC Slashes 30,000 Jobs Worldwide

The word is out that financial giant HSBC slashes 30,000 jobs worldwide. The job cuts will be carried out over the next two years. This major shift is aimed at cost-cutting and adding focus on Asia. The massive cuts will begin in France, Britain, the Middle East, Latin America in the U.S., resulting in 5,000 workers losing their jobs. The job cuts will continue until they represent 10% of HSBC’s worldwide workforce. The cuts have been ordered as part of an overall plan to save $3.5 billion, or 2.4 billion Euros, in costs over the next two years.

HSBC Job Cuts

A spokesperson for HSBC stated the company plans to begin rehiring in 2013. HSBC, Europe’s largest banking institution is not alone in massive job cuts. The Credit Suisse and Intesa Sanpaolo have both announced thousands of job cuts as well.

The announcement that HSBC slashes 30,000 jobs worldwide is somewhat surprising because after surviving the global financial crisis of 2008, the institution reported growth. HSBC’s pre-tax profits increased to $370 million, which was a 3.3% growth and total revenues rose to $35.7 billion. These job cuts may also be a result of the new banking environment that has been established after the 2008 crisis which places mores stringent regulations on financial institutions.

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