Having already removed 5,000 posts HSBC’s new chief executive Stuart Gulliver has revealed that another 25,000 are to go from their 296,000 worldwide work-force.
This is part of the bank’s drive to save some Â£2.14 billion and improve its return on equity to 12%-15% from its 2010 figure of 9.5%.
It is still not clear what impact these ‘role reductions’ will have on UK workers. But it is thought that HSBC is set to transform its worldwide business by expanding in to Asia at the expense of less profitable areas.
The bank has also recently reported better than expected results with first half pre-tax profits up 3% to $11.5 billion. This allowed the bank to increase its dividend for the period to 18 cents, up 12.5%.
HSBC is also shedding 195 branches of First Niagara Bank as it consolidates its core business.
HSBC’s shares rose on the cost cutting news.
The Unite union national officer, David Fleming said "It is now necessary for the bank to confirm to its UK workforce how this news will impact on them. The employees being hit by these extensive cuts were in no way responsible for the banking crisis, yet it is these staff, many of whom are low paid, who are having to pay for the bank's recovery.”