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HSBC to cut up to 20,000 jobs

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Banking giant HSBC will next week set out plans to cut thousands of jobs across its global operation, Sky News reports.

The bank, which has suffered a bruising few months in the wake of claims it helped over 1,000 UK customers evade tax between 2005 and 2007, will next week unveil a revised target for reducing headcount by the end of 2017, the report says.

The scale of the job cuts will be detailed by HSBC chief executive Stuart Gulliver on 9 June, although the number is expected to be between 10,000 and 20,000. HSBC employed 258,000 people worldwide at the end of 2014.

The number of role reductions are said to include the potential impact of the sale of HSBC’s operations in Brazil and Turkey.

The news comes just three months after Gulliver and HSBC chairman Douglas Flint were hauled in front of the Treasury select committee to defend the bank following accusations of aiding tax evasion.

Both men apologised for the misconduct but refused to shoulder blame for activities undertaken at HSBC’s Swiss private banking arm, with Flint saying management in Switzerland were “most accountable”.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Well the savings will no doubt cover a lot of regulatory fines. I wonder if the regulators realise the correlation?

  2. Steven Balmer 2nd June 2015 at 9:42 am

    Almost a threat to the regulators, get too heavy handed and the political fall out will involve a lot of job cuts and negative press, know your place! Hardly surprising the bankers want a return to Labour led non regulation or accountability. Who has been charged with anything the banks have done? Despite the billions in tax evasion, rate rigging and false testifying no one has been held to account.

  3. I understood that the first court cases over rate rigging started recently.

    Not clear if this is separate from their review about remaining London based.

  4. @Steven

    Neither the firms, the shareholders nor the Regulator would need to worry if they just fined the individuals. Those now getting made redundant have the perpetrators to thank. And it is not unlikely that some of these will actually keep their jobs.

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