HSBC has unveiled plans to reduce its global headcount by as many as 25,000 employees, including 8,000 in the UK, and rationalise worldwide operations to shift focus to high-growth Asian markets, as it launches a 10-point plan to “transform” the organisation.
According to bosses, the banking giant is redeploying resources to capture expected future growth opportunities. It hopes to make annual cost savings of between $4.5bn and $5bn (£2.9bn and £3.26bn) by 2017.
In addition the bank is seeking to scale down the size of its global investment banking balance sheet, which according to the Guardian is close to the size of the UK economy.
The bank, which has been hit by a strong of regulatory penalties, is also moving ahead with a headquarters review by the end of this year, which will assess whether it remains a UK-based bank based on 11 criteria, including UK tax policy.
In parallel HSBC intends to accelerate investments in Asia. It will expand asset management and insurance in Asia with the aim of capturing expected opportunities from emerging wealth in the region.
Stuart Gulliver, group chief executive, said the group has access to high growth markets, a diversified universal banking model with strong funding and a low risk profile, plus strong internal capital generation with industry leading dividends.
“We recognise that the world has changed and we need to change with it. That is why we are outlining 10 strategic actions that will further transform our organisation.
“The world is increasingly connected, with Asia expected to show high growth and become the centre of global trade over the next decade.”
emma.hughes@ft.com, ashley.wassall@ft.com
