The banking sector is drawn to the consequences of the global financial crisis. Europe’s biggest bank, HSBC, has this morning announced that it will reduce its workforce by 25 000 people.
This is the second time in four years as head of HSBC, Stuart Gulliver, takes to the big sledgehammer to try to make the bank more profitable. 25,000 people will join. This is equivalent to almost ten percent of the more than 260 000 employees, the bank now has around the world.
UK suffer the hardest. The Bank’s headquarters is located here in London. Here, 8,000 employees out of the more than 40,000 available today. And the future of HSBC in the UK are at all unsure.
The boss Stuart Gulliver reiterated today that the bank is considering moving its headquarters elsewhere. He also refers to the forthcoming stricter national rules for the financial sector and uncertainty about whether Britain will continue to be part of the EU after the referendum that Prime Minister David Cameron has promised by the year 2017
Actually, HSBC’s workforce to shrink even more. This is because the bank will sell its operations in Brazil and Turkey. They together have about 25 000 employees, so the total will HSBC to shrink by 50 000 people. In total, the Bank’s cost reduction by five billion dollars.
HSBC has recently been under severe fire since been revealed with helping wealthy clients to evade taxes through their Swiss operations. The boss Stuart Gulliver is no mention of it today.
According to Gulliver, the bank must adapt to the new economic world order where emerging markets, particularly in Asia has gained increasing weight in the world economy.
– The world changes, we must change with it, said Stuart Gulliver.
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