50,000 jobs cut in HSBC

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HongKong: HSBC will cut almost 50,000 jobs from its payroll, take an axe to its investment bank and shrink its risk weighted assets by  $290 billion in an effort to improve its sluggish performance, Europe’s biggest bank said on Tuesday.The announcement to the Hong Kong stock exchange came ahead of a presentation to investors and analysts when Chief Executive Stuart Gulliver will give more detail on his second major strategic plan since he took the helm at the start of 2011.

The job cuts, which will affect almost a fifth of the bank’s workforce, involve 25,000 staff from the expected sales of the lender’s Brazil and Turkey units and 22,000-25,000 from the consolidation of IT and back office operations and branch closures.The cuts are the latest in a series of heavy staff reductions and will leave the bank with around 208,000 full-time equivalent staff, down from 295,000 at the end of 2010 and 258,000 at the end of 2014. However the cuts, to be completed by 2017, will be followed by some hiring in growth businesses and the bank’s compliance division, HSBC said without providing details on how many people will be recruited.

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