HSBC Birmingham plans secure following job cuts announcement
HSBC has announced plans to axe 8,000 jobs in this country and a further 12,000 worldwide in a major cost-cutting drive.
However, it is to continue with its $11bn plan to create a ring-fenced bank based in Birmingham as one of its “strategic actions”.
It has agreed terms on the, as yet unbuilt, 2 Arena Central scheme in the centre of Birmingham and plans to move 1,000 head office roles from London to its new 210,000 sq ft Second City building by January 2019.
However, the bank, which currently has around 48,000 employees in the UK, said it is looking to reduce costs by up to $5bn (£3.25bn) a year by 2017 and boost investment in the Far East.
It said the cuts would hit both its retail bank and investment operations.
Chief executive Stuart Gulliver said: “We recognise that the world has changed and we need to change with it.
“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.”
After a year of scandals including regulatory fines and allegations of tax avoidance in Switzerland, there has been speculation that HSBC will shift its global headquarters from the UK to Hong Kong. A decision on this will be taken later this year.
