HSBC to cut 30,000 jobs

The bank is already in the process of cutting 5,000 jobs, but said it will probably axe another 25,000 by 2013 as part of wider plans to trim costs and streamline the global business in the wake of the economic crisis.

HSBC‘s updated restructuring plan was announced as part of better-than-expected results for the six months to June. Pre-tax profits rose by 3 per cent year-on-year to $11.5bn (£7bn).

The bank, which has already cut 700 UK jobs, said the future job cuts are unlikely to hit the UK. HSBC Chief Executive Stuart Gulliver also said the figure did not take into account jobs that will be created as a result of HSBC’s expansion plans in areas where the bank is growing, such as Asia and Latin America.

Mr Gulliver wants to restructure how the bank operates, as well as cutting its cost base by around $3.5bn over the next two years.

He said the job cuts would be targeted at back office, head office and support operations in a bid to reduce overheads, stressing that HSBC has a staff turnover rate of between 10 and 15 per cent which would account for some of the reductions.

In total, the bank employs 335,000 people worldwide, including 52,000 in the UK.

HSBC shares jumped almost 5 per cent in response to the results, to 623.5p.

Bank job losses post credit crunch
Royal Bank of Scotland: 28,000 so far but more cuts expected
Lloyds Banking Group: 15,000 announced last week, on top of 28,000 since the HBOS deal in 2008
Barclays: 2,600 since January, 600 of which are in its investment banking arm. Update due tomorrow
HSBC: 30,000 by 2013