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INCYBER NEWS

HSBC Plans To Cut Staff By 10 Percent; Layoffs Will Affect 22,000 Workers

 

LONDON (AP) — HSBC Holdings, Europe’s largest bank by market value, will cut up to 25,000 jobs globally to reduce costs and shift its center of gravity further toward the fast-growing Asian economies where it started operations 150 years ago.

The bank, which is based in London and has a value of around 120 billion pounds ($184 billion), said Tuesday it is “undertaking a significant reshaping of its business portfolio” and “redeploying resources to capture expected future growth opportunities.”

June 9, 2015   by PAN PYLAS (c) Huff Post Bus.

The HSBC headquarters in Istanbul are pictured on June 9, 2015. Scandal-hit bank HSBC said on June 9 it would cut its global headcount by up to 50,000 as part of a restructuring that entails its withdrawal from Brazil and Turkey, while it also mulls abandoning London as its HQ. AFP PHOTO/ OZAN KOSE (Photo credit should read OZAN KOSE/AFP/Getty Images)

The HSBC headquarters in Istanbul are pictured on June 9, 2015. Scandal-hit bank HSBC said on June 9 it would cut its global headcount by up to 50,000 as part of a restructuring that entails its withdrawal from Brazil and Turkey, while it also mulls abandoning London as its HQ. AFP PHOTO/ OZAN KOSE (Photo credit should read OZAN KOSE/AFP/Getty Images)

 

Though it has not yet decided whether to move its headquarters, the bank’s statement shows clearly where it thinks its commercial future lies — China and the Asia-Pacific region.

HSBC already has a major presence across Asia. Around 75 percent of its 2014 profits were generated in the region, even though it only has about a third of its staff there and its assets are dwarfed by those it controls in Europe.

HSBC has historic ties to the region. It was founded in Hong Kong in 1865 when the city was a British colony in order to finance growing trade between China and Europe, much of it involving opium. Its original name, later shortened to HSBC, says it all: The Hongkong and Shanghai Banking Corporation.

“The world is increasingly connected, with Asia expected to show high growth and become the center of global trade over the next decade,” said Stuart Gulliver, HSBC’s chief executive. “We recognize that the world has changed and we need to change with it.”

HSBC, which has operations in over 70 countries and around 51 million customers, said it intends to sell its operations in Turkey and Brazil, a move that will see its workforce reduce by around another 25,000. Although planning to dispose of its operation in Brazil, HSBC said it plans to maintain a presence in that country to serve large corporate clients in their international dealings.

Overall, HSBC aims to cut costs by $4.5 billion to $5.0 billion by the end of 2017 and reduce the number of full-time employees by around 10 percent, equivalent to between 22,000 and 25,000.

About 8,000 of those lost jobs will be in Britain. The bank hopes many will come from attrition, by not filling posts that are vacated.

A top union official in Britain said the expected job cuts represented the latest example of a workforce being punished for the misconduct of others, notably those in senior management and investment banking. HSBC has paid billions in fines globally to settle investigations of market rigging and allegations it helped clients evade taxes and launder money.

“After all the scandals of recent years, front-line staff have suffered time and time again as they are forced to pay for the mistakes of others with their jobs, their terms and conditions and their reputation,” said Dominic Hook of Unite union.

To see the rest of the article go to: http://www.huffingtonpost.com/2015/06/09/hsbc-layoffs_n_7541990.html

InCyber Comments:

The reason this article is of great interest to Cyber Security Executives is, the high degree of Malicious Activities that follow such a huge Layoff announcement.

InCyber, Inc. strongly recommends HSBC and other companies who are contemplating massive layoffs to have early discussions with the CIO and/or CISO of the company and deploy advanced warning Prediction System such as the InCyber PAS (Pro-Active System). The InCyber PAS Pro-Active and Predicting System has been proven 100% effective against Insider Threats. For additional information write to:  info@incyber.co  We are now offering a Free Insider Penetration Test for up to 500 Employees using your own historical data.

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