6,100 jobs to be laid off by HSBC

March 3rd, 2009 - 3:54 pm ICT by Amrit Rashmisrisethi  

HSBCEurope’s largest bank by market value HSBC, said on Monday it will raise US$17.7 billion by issuing shares after reporting a 70 per cent drop in profits in 2008, when the financial crisis deepened.

Net profit fell to US$5.7 billion last year from US$19.1 billion a year earlier due to greater charges on the value of its assets and operating expenses, the company said.

The British banking group said it would axe 6,100 jobs in the United States by shutting most of its HFC and Beneficial branches.

‘In this difficult environment, we missed our profitability targets,’ HSBC chairman Stephen Green said in the group’s earnings statement.

‘The coming twelve months will be difficult. We expect parts of Asia, the Middle East and Latin America to continue to outperform Western economies, but to be constrained by the global downturn.

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