LONDON, June 9 (UPI) -- HSBC, one of the world's largest banks by assets, said it will reduce as many as 50,000 jobs by selling several underperforming businesses in an effort to improve profitability.
The bank said it will cut 22,000 to 25,000 full-time jobs by the end of 2017. Another 25,000 positions or so will be cut through the sale of underperforming businesses in Brazil and Turkey, but will keep a presence in Brazil for large corporate clients. The moves will reduce the company by about 19 percent of its 266,000-person workforce over the upoming two years. The bank, the largest in Europe, also said it will refocus on Asia and cut up to $5 billion in annual costs by 2017.
"We recognize that the world has changed and we need to change with it," HSBC Chief Executive Stuart Gulliver said in a written statement."The world is increasingly connected, with Asia expected to show high growth and become the centre of global trade over the next decade. I am confident that our actions will allow us to capture expected future growth opportunities and deliver further value to shareholders."
HSBC also said it will complete its review of a possible relocation of its London headquarters in an effort to avoid UK taxes on bank balance sheets, a move that would involve shifting some 250 jobs. It will also set up a ring-fenced bank, a move aimed at protecting retail banking customers from lenders' investment banking arms.
