The Anglo-Asian bank HSBC has announced a drastic cut in employees, which will lead to a 10% reduction in the total workforce. The news announced by the managing director Stuart Gulliver contrasts with the excellent financial results for the first half of the year.
The Bank reported a pre-tax profit of $11,5 billion, up from $11,1 billion in the same period of 2010 and better than the $10,8 billion estimated by analysts. Net income increased by 35 per cent to 8,9 billion and the Bank declared that it intends to pay shareholders a dividend of 18 cents per share for the period in question, against 10 cents the previous year.
Yet the Group has announced the cut of about 5.000 jobs as a result of the restructuring of activities in Latin America, the USA, Great Britain, France and the Middle East. And the manager has expressed his intention to cut another 25.000 over the next two years. HSBC said results in emerging economies were unexpectedly up, while the US and Europe continued to struggle. The Bank has communicated its intention to get rid of the branch network in the United States, which will be sold for one billion dollars to First Niagara Financial Group.
