Open

Coming up

Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

Budget challenge for India's new government

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan? (part 2)

Read more

DEBATE

Africa's Newest Failed State: How to Stop Civil War and Famine in South Sudan?

Read more

MEDIAWATCH

Israeli strikes on Gaza as seen on social media

Read more

INSIDE THE AMERICAS

World Cup humiliation for host nation

Read more

DEBATE

Israel and the Palestinians: How to Break the Cycle of Violence?

Read more

AFRICA NEWS

Somalia : Al Shebab attack on presidential palace

Read more

FOCUS

Sharia law to be enshrined in British legal system?

Read more

ENCORE!

How a comedy dud became one of France's biggest box office hits

Read more

  • Israel steps up airstrikes as diplomacy gets under way

    Read more

  • Argentina beat Netherlands on penalties to reach World Cup final

    Read more

  • Foiled French jihadist ‘targeted Louvre and Eiffel Tower’

    Read more

  • Obama in Texas to urge congressional action on child migrant crisis

    Read more

  • Iraq’s heritage 'in danger' from ISIS militants

    Read more

  • Froome crashes out of Tour de France

    Read more

  • South Sudan independence heroes ‘have lost their way’

    Read more

  • 100 years on, the Tour de France returns to the Western Front

    Read more

  • Dozens of blindfolded bodies found south of Baghdad

    Read more

  • Alps Murder wife had ex-husband who died on same day

    Read more

  • Both candidates say they won Indonesian presidential election

    Read more

  • Brazil players should never wear 'sacred uniform' again, press says

    Read more

  • Exiled Syrian opposition elects new president

    Read more

  • Ukraine imposes new conditions on peace talks with pro-Russia rebels

    Read more

  • Sarkozy's UMP party 'almost €80 million in debt'

    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

Comments

COMMENT(S)