Why is HSBC cutting 8,000 jobs?

Bank set to cut nearly a fifth of its jobs in the UK

HSBC is making cuts to both retail and investment banking operations, leading to the loss of 8,000 jobs in the UK.

Across the world, it’s likely axing 25,000 jobs – nearly 10% of the 266,000 staff globally.

HSBC is cutting back in an attempt to make more money, after “the world’s local bank” has been stifled by homegrown competition in many of the countries it operates in.

Unite national officer Dominic Hook told the BBC: “It’s really sad that all our members, all the hard work they’ve done to try to get the bank back working properly after all the scandals of the last few years, are going to be paying with their jobs.”

He said the bank should begin a voluntary redundancy scheme – something it had never had before.

HSBC said it would be selling operations in Turkey and Brazil, but still maintaining a presence in Brazil.

Stuart Gulliver, HSBC chief executive, said in a statement: “HSBC has an unrivalled global position: access to high growth markets; a diversified universal banking model with strong funding and a low risk profile; and strong internal capital generation with industry leading dividends.

“We recognise that the world has changed and we need to change with it.”

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