HSBC to slash 30,000 jobs worldwide

HSBC Holdings Plc, the London-based banking giant today said that it will slash 30,000 jobs by the end of 2013 as part of a major cost-cutting initiative even as its first-half net profit rose to $8.9 billion.

Earlier on Wednesday, Sky News reported that senior executives at HSBC "are close to finalising costs cuts that will result in thousands of jobs being axed across the bank's sprawling global empire" (See: HSBC set to cut 10,000 jobs, says report)

Earlier this morning, chief executive Stuart Gulliver revealed that 5,000 jobs had already been eliminated as part of restructuring in Latin America, the US, France and the Middle East including about 700 in the UK and another 25,000 jobs would be axed or about 10 per cent of HSBC's current global workforce of 2,96,000 by 2013.

In the deepest job cuts being made in Europe's largest lender's history, Gulliver had in May signalled that the bank would slash costs by up to $3.5 billion by 2013 and the savings would be ploughed back into fast-growing markets around the world, especially in Asia.

HSBC made the announcement as it reported first-half net profit rose 35 per cent to $8.9 billion from $6.6 billion on revenues stagnant at $35.7 billion.

Double-digit percentage revenue growth in Hong Kong, the rest of Asia Pacific and Latin America made up for declining revenues in Europe.