HSBC axes 1,100 jobs worldwide

HSBC, the UK’s largest bank, is shedding around 1,100 jobs worldwide across its global banking and markets division, as it comes under pressure due to the current financial turmoil.

The jobs represent around 4% of its total workforce with nearly half of the job cuts to go at the bank’s Canary Wharf office in London, where the division is headquartered.

A spokesperson for HSBC said the bank had opted to slash its workforce due to current market conditions and the economic environment. The bank added it is cautious for 2009.

In August, the bank reported a fall in profits of 28% to £5.2 billion, after it was forced to write-off £7.5 billion from toxic debts in the US and asset write-downs.

However, HSBC is better positioned than many of its rivals as it has a large presence in the fast growing emerging markets in Asia, which have it helped it survive the turmoil better than many of its competitors. In the first six months of the year, the bank remained profitable in all regions apart from North America.

Banks worldwide are facing increased pressure due to the current volatility in the financial markets.

Yesterday, Bradford & Bingley, which is the UK’s biggest buy-to-let lender, announced its mortgage processing centre in Borehamwood, Hertfordshire, is be closed with the loss of 370 jobs.

Discuss this in the Finance Markets forums

Story link: HSBC axes 1,100 jobs worldwide