HSBC to shed 50,000 jobs

[Bosonic]

Source: CNN

HSBC will shed 50,000 jobs in the coming years as it slashes costs and sells parts of the bank to focus on Asia.

The changes are part of a major restructuring plan that is designed to save the bank $5 billion annually by 2017.

HSBC will sell its businesses in Brazil and Turkey, reducing headcount by 25,000. In addition, another 22,000 to 25,000 job cuts are planned across the bank, which should reduce the total number of employees to roughly 208,000. As part of a previous effort to cut costs, HSBC axed nearly 40,000 jobs between 2011 and 2014.

HSBC (HSBC) also announced that it will emphasize online banking and self-service, allowing the bank to shutter 12% of its branches. Some of the bank's operations will be be moved to low-cost locations, and 75% of its software development will now be done in China and India.

Read more: http://money.cnn.com/2015/06/09/investing/hsbc-job-cuts/

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HSBC to cut global headcount by up to 50,000 (AFP)

Scandal-hit bank HSBC said Tuesday it would cut its global headcount by up to 50,000 as part of a restructuring that entails its withdrawal from Brazil and Turkey, while it also mulls abandoning London as its HQ.

...

HSBC said there would be a 10 percent reduction in jobs, with between 22,000 and 25,000 classified under "transformation savings".

A further 25,000 jobs would be lost with the sale of operations in Turkey and Brazil.

...

Gulliver also confirmed the job losses would include between 7,000 and 8,000 positions in Britain -- where its retail bank will be rebranded and relocated from London to Birmingham, central England, by 2019.

http://news.yahoo.com/hsbc-says-cut-5bn-2017-sell-brazil-turkey-054030322.html

[Recursion]

1. Ouch. How many of those are in the US?

I know they're talking about dropping 8000 teller positions in India, but I think that's separate from this.

(Also, "separate" always looks wrong to me. It should be "seperate&quot .

[damyank913]

2. They can get 100,000 people to work for the same cost in China...

...I wonder what the CEO compensation packages would swell to then. Anyone think it'll all trickle down?

[Recursion]

3. They're a UK-based company, so they'll at least be taxed at 45% (nt)

[damyank913]

5. The way they're shedding makes me wonder what they're intentions truly are.

And whether or not they will remain in the UK. Hell, China would give them an entire city for the investment.

[wordpix]

6. companies are selling bricks n mortar properties & becoming real estate moguls

and as long as people keep upping world population toward 10 billion, real estate will do well

[OnlinePoker]

9. Not according to their annual report.

Last year they had $18.4 Billion in profit and paid $3.6 Billion in taxes on that profit. They say their "effective tax rate" was 21.3%. However, with other fees and levies, they paid a total of $7.9 Billion which would come to around the 45% you stated.

[Helen Borg]

4. Hate HSBC...

Such a cumbersome and slow institution...

[Dont call me Shirley]

7. Another round of massive layoffs. Intel has announce a round of massive layoffs.

They're getting primed to crash our economy again, since they have siphoned off as much as they can at this point.

Pitchforks to the bankers.

[L0oniX]

8. Drug money laundering ain't what it used to be.

[KansDem]

10. My thought exactly...

In the past few weeks, violence in the western Mexican state of Michoacán has been rapidly escalating. The government's inability to deal with the powerful cartels has led to citizens taking the law into their own hands -- by forming armed vigilante groups. The bloodshed caused by this development has now led to the deployment of Mexican soldiersinto the region, which in turn has caused further civilian deaths.

The failure of both the vigilantes and the army to quell the cartel's carnage is a direct result of the huge profits that the drug trade generates. Cartel leaders can continue hiring and arming their combatants because it's worth the expenditure; the illegal drug trade accounts for around 8 percent of all international trade. One of the primary reasons that cartels retain their enormous power is that well-known and popular banks are supporting their finances.

Bank of America, Western Union, and JP Morgan, are among the institutions allegedly involved in the drug trade. Meanwhile, HSBC has admitted its laundering role, and evaded criminal prosecution by paying a fine of almost $2 billion. The lack of imprisonment of any bankers involved is indicative of the hypocritical nature of the drug war; an individual selling a few grams of drugs can face decades in prison, while a group of people that tacitly allow -- and profit from -- the trade of tons, escape incarceration.

The hypocrisy of the role that banks play in the drug trade is particularly disgraceful when considering the recent system of marijuana regulation that was introduced in Colorado. The state's legal marijuana business has proven to be highly lucrative, with $5 million made in the first week of 2014. However, at present, marijuana businesses cannot access essential banking services. Despite liberalization of marijuana laws in Colorado and elsewhere, the plant remains illegal at the federal level; this means that banks won't open accounts for marijuana businesses, so the majority of their transactions are cash-only. The movement of such large amounts of cash can be highly dangerous for business owners, and troublesome for both customers and tax collectors.

http://www.huffingtonpost.com/avinash-tharoor/banks-cartel-money-laundering_b_4619464.html

[raouldukelives]

12. I'm sure what they lost in that, they will make up for in human trafficking.

Old habits die hard.

[Sunlei]

11. online banks are most profitable, don't have to deal with the 'lowest class, poorest citizens'

just open a check cashing store with high fees for walking poor.