Open

Coming up

Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

“The world’s dictators love the unrest in Ferguson”

Read more

IN THE PAPERS

A bellwether for what not to do

Read more

ENCORE!

Montreal Stories

Read more

BUSINESS DAILY

More than half of French households will pay no income tax this year

Read more

MEDIAWATCH

#IceBucketChallenge and hashtag activism

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government? (part 2)

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government?

Read more

WEB NEWS

Web users taking on the "Ice Bucket Challenge" to fight ALS

Read more

FOCUS

Israel's minorities and military service

Read more

  • Ex-PM Juppé announces bid for 2017 French presidential race

    Read more

  • Dozens killed as landslides strike Japan’s Hiroshima

    Read more

  • IS militants ‘behead’ missing US journalist in gruesome video

    Read more

  • Deadly airstrikes hit Gaza as ceasefire with Israel collapses

    Read more

  • Tentative peace in Ferguson despite second fatal shooting

    Read more

  • Suspected Ebola cases in Austria, new drug raises hopes

    Read more

  • WWII anniversary highlights best - and worst - of Paris police

    Read more

  • Headscarf at the beach sparks French MEP’s fury

    Read more

  • Iraqi army clashes with militants in Tikrit after retaking key dam

    Read more

  • Video: Life in under-siege Donetsk

    Read more

  • Racism, riots and police violence: USA under scrutiny

    Read more

  • ‘Let it be’: Londoners sick of Abbey Road tourists

    Read more

  • Australia to free children from immigration detention centres

    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)