HSBC to cut 10% of workforce in $5bn savings drive

The bank is targeting $5bn in annual cost savings by 2017, and a reduction of Group Risk Weighted Assets of about $290bn.

HSBC is also planning to sell its operations in Turkey and Brazil, maintaining a presence in Brazil to serve large corporate clients with respect to their international needs.

In parallel, HSBC intends to accelerate investments in Asia, in particular the Pearl River Delta in Guangdong province, China, and in the ASEAN region. HSBC will expand asset management and insurance in Asia with the aim of capturing expected opportunities from emerging wealth in the region. HSBC aims to deliver above GDP revenue growth from its international network through investment in Foreign Exchange, Payments and Cash Management, and Global Trade and Receivables Finance.

Stuart Gulliver, Group Chief Executive, commented:

“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.

“The world is increasingly connected, with Asia expected to show high growth and become the centre of global trade over the next decade. I am confident that our actions will allow us to capture expected future growth opportunities and deliver further value to shareholders.”