HSBC
plans to announce thousands of job cuts on Monday as part of an ongoing
cost-cutting program announced in May, based on media reports.
The British banking company is expected
to announce it’s cutting 10,000 jobs, or 3 percent of its workforce,
when it reports earnings on Monday, the New York Occasions reported
Sunday, attributing the information to “a person with direct knowledge
of the decision.”
HSBC spokesman Neil Brazil in New York declined to comment on the report.
HSBC Holdings PLC told investors in
Might that its new management team was implementing a technique that
would shift focus away from retail banking to commercial and corporate
banking, and would target investment in high-growth economies.
Chief Executive Stuart Gulliver, who
moved into his job in the start of the year, stated the bank will be
directing investment to fast-growing markets, such as Mexico and Turkey,
and scaling back elsewhere by, for instance, withdrawing from retail
banking in Russia. These and other moves are intended to trim expenses
by up to $3.five billion within three years.
The bank is nonetheless dealing with the
legacy of poor loans in the U.S. from the 2003 acquisition of consumer
lender Household International Inc. The acquisition produced HSBC the
greatest subprime lender in the United States in the time, which
resulted in billions of losses to HSBC leading as much as the financial
crisis of 2008.
As component of its strategic
realignment, the bank also said Sunday that it will sell 195 retail bank
branches, most located in upstate New York, to Initial Niagara Bank in a
deal worth about $1 billion. The companies expect the all-cash
transaction to be completed early next year. First Niagara, a unit of
First Niagara Monetary Group Inc. of Buffalo, N.Y., stated in a
statement that it expects to retain most of the 1,900 workers currently
employed by the affected banks.
The New York Times stated the planned job cuts had been initial reported by British news broadcaster Sky News.