HSBC to Shed 3,000 Jobs in Hong Kong

As part of a global cost reduction effort, HSBC Holdings PLC says it would cut 3,000 jobs in its regional headquarters in Hong Kong over the next three years, reports Wall Street Journal.


The cuts, announced by Asian-Pacific Chief Executive Peter Wong in a memo to employees, are in "support functions" and part of the 25,000 jobs HSBC said last month will disappear by 2013, says the newspaper. 


The bank has already slashed 5,000 jobs in the U.S., the U.K., France, Latin America and the Middle East.


"For all of HSBC's strengths as an organization…we can be needlessly complex and bureaucratic," Wong wrote in the memo seen by Dow Jones Newswires. "This complexity reduces our effectiveness and efficiency. Our best estimate at this time is that approximately 3,000 existing roles [in Hong Kong] will be reduced over these three years."


It is unclear whether there will be a net decrease in HSBC's Asian head count after the 3,000 jobs are eliminated. The bank said this year it plans to hire at least 2,000 people in mainland China and Singapore over the next five years and 3,000 to 5,000 annually in Asia, notes the Journal.


The cuts would be a big blow for Hong Kong because the bank has for decades been one of the city's biggest employers and biggest consumer bank by deposits.




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