HSBC Holdings Plc (HSBA), Europe’s largest bank by market value, plans to eliminate 3,166 jobs in the U.K. as it reduces the number of employees in its wealth-management business who aren’t qualified to give advice.
The lender will create 2,017 new positions and workers will be able to re-apply for those jobs leading to a net reduction of 1,149, the London-based bank said today in a statement.
Chief Executive Officer Stuart Gulliver, 54, has closed or sold at least 47 businesses since he took the top job in 2011, sacrificing revenue and targeting 30,000 job losses to improve profitability. The company said last month it has cut $3.6 billion of costs so far, beating its $3.5 billion plan. The lender could achieve $1 billion in further savings in 2013, Finance Director Iain Mackay told analysts last month.
“The cuts HSBC is making will affect the whole business and will mean fewer personal advisers serving more customers and small- and medium-size businesses getting less support when they should be getting more,” Unite national officer, Dominic Hook, said in a separate statement.
Labor union Unite will ask employees if they wish to take part in a strike ballot, it said.
-- Editors: Jon Menon, Simone Meier
To contact the reporter on this story: Howard Mustoe in London at firstname.lastname@example.org.
To contact the editor responsible for this story: Edward Evans at email@example.com