Home ECONOMY HSBC announces layoffs, exit from Turkey and Brazil

HSBC announces layoffs, exit from Turkey and Brazil


Hong Kong, June 9:

HSBC on Tuesday announced a new strategic plan that includes a restructuring of 10 percent of its global workforce, review of the possibility of moving its headquarters, its exit from markets in Turkey and Brazil, and an expansion of its operations in Asia.

HSBCThe new business plan seeks to cut costs by $5 billion and push the return on equity to over 10 percent by 2017, Efe news agency reported.

In a statement to the Hong Kong stock exchange, the bank also announced plans to step up investments in Asia with special focus on China and Southeast Asia.

The bank is planning to expand asset management and insurance operations in China’s Pearl river delta region in addition to pushing the internationalisation of the yuan.

HSBC, the largest European bank with its headquarters in London, will also be studying the possibility of relocating to Hong Kong by the end of the year, experts say.

Several economic journals citing a presentation made by HSBC on the internet reported that the company was planning to slash 22,000 jobs, thereby reducing its global force by 10 percent.

This is the second round of layoffs by the bank in the last four years.

In 2011, the company announced its decision to cut 30,000 jobs.

Company shares rose 2.4 percent in Hong Kong following the announcement. (IANS)