Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Online reactions to French church attack

Read more

THE DEBATE

France Church attack

Read more

FOCUS

Video: Inside a migrant hotspot in southern Italy

Read more

ENCORE!

'Oh my Gad!' French comedian Gad Elmaleh on his American dream

Read more

THE DEBATE

Democratic Convention: Can the Democrats now unite around Hillary Clinton?

Read more

THE INTERVIEW

'Lady Liberty': The story behind the pictures

Read more

IN THE PAPERS

'The People Want Bernie' chanted at Democratic Convention

Read more

BUSINESS DAILY

Air France set for fresh strike action

Read more

IN THE PAPERS

Is France 'at war'?

Read more

Business

HSBC plans to cut 1,200 jobs in Britain

Latest update : 2009-03-25

British bank HSBC has explained it could be forced to cut as many as 1,200 jobs in Britain in order to face the "extremely challenging" banking environment. The cuts represent 2% of its 58,000 workers in Britain.

AFP - HSBC said Wednesday it could axe up to 1,200 workers in Britain as Europe's biggest bank reacts to the financial crisis.
  
"There are difficult decisions that have to be made as we adapt to a new environment and ensure we are well positioned for the future," said HSBC managing director Paul Thurston.
  
"The operating environment for banks in the UK is extremely challenging and will remain so for some time," he added.
  
HSBC, which employs 58,000 workers in Britain, said the plan to cut two percent of its workforce there would hit its IT and human resources operations.
  
In reaction, the share price of HSBC was up 0.19 percent to 392 pence on London's FTSE 100 index, which rose 0.42 percent to 3,927.9 points in early trade.
  
HSBC is cutting staff and boosting its capital by 12.5 billion pounds (13.6 billion euros, 18.3 billion dollars) to withstand the financial crisis.
  
The London-based bank outlined its plan for a record British rights issue earlier this month when it reported a 70-percent plunge in annual net profits.
  
HSBC, which enjoys solid growth in Asia, had been regarded as one of the more robust global banks as the crisis devastated many top lenders and has refused British government financial help in contrast to some of its rivals.
  
However its bad debts surged to almost 25 billion dollars last year, mainly as a result of the collapse of the US subprime housing market.
  
HSBC recently said it was shutting most of its HFC and Beneficial branches in the United States, with the loss of 6,100 jobs. HSBC has meanwhile already shed 1,100 employees -- including 500 in Britain -- at its investment banking division since late 2008.
  
HSBC was one of the first banks to warn of problems with products linked to the subprime or high-risk US mortgage sector. Last September, it scrapped a six-billion-dollar deal to buy a major South Korean bank after the financial crisis cut asset values worldwide.
  
Last week, HSBC shareholders overwhelmingly approved the plan to boost the bank's capital by 12.5 billion pounds.
  
The group is to offer investors five new shares at a heavily-discounted 254 pence each for every 12 they already own.

Date created : 2009-03-25

COMMENT(S)