1200 HSBC workers to be axed

March 26th, 2009 - 4:37 pm ICT by Amrit Rashmisrisethi  

HSBCOn Wednesday, HSBC announced that they could axe up to 1,200 workers in Britain as Europe’s biggest bank reacts to the financial crisis.

‘There are difficult decisions that have to be made as we adapt to a new environment and ensure we are well positioned for the future,’ said HSBC managing director Paul Thurston.

‘The operating environment for banks in the UK is extremely challenging and will remain so for some time,’ he added.

HSBC, currently employs 58,000 workers in Britain, said the plan to cut two per cent of its workforce there would hit its IT and human resources operations.

HSBC is cutting staff and boosting its capital by 12.5 billion pounds to withstand the financial crisis.

The London-based bank outlined its plan for a record British rights issue earlier this month when it reported a 70 per cent plunge in annual net profits.

HSBC, which enjoys solid growth in Asia, had been regarded as one of the more robust global banks as the crisis devastated many top lenders and has refused British government financial help in contrast to some of its rivals.

However its bad debts surged to almost US$25 billion last year, mainly as a result of the collapse of the US subprime housing market.

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