HSBC may cut 14,000 more jobs by 2016 in a drive to cut costs by another £2 billion.
In a response to weak demand outside of Asia, the bank has launched a new cost-cutting drive, attempting to keep costs below 55% of revenue. However, in its quarterly statement last week HSBC’s profits were almost doubled to £5.4 billion.
46,000 staff worldwide and have already been axed from HSBC since CEO Stuart Gulliver took the reins at the start of 2011. Plans to cut over 1,000 UK workers from the bank were announced in April of this year. In a strategy update, HSBC confirmed that 14,000 jobs may go but it was on track to dispose of 52 non-core businesses.
Gulliver said: ‘We will continue to exert tight cost discipline whilst streamlining processes and procedures.
‘HSBC is now simpler, easier to manage and ready to take advantage of growth opportunities’.
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