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HSBC May Cut Thousands Of Jobs

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HSBC Plc is close to announcing that it will cut thousands of jobs as it embarks on a cost-cutting drive, Sky News reported, citing people close to Europe's biggest bank.

The plans have not yet been finalised, but could see more than 10,000 jobs being cut, Sky News added, citing an insider at the bank.

An HSBC spokeswoman in Hong Kong declined to comment.

HSBC has about 330,000 employees worldwide, and the report comes after it said in May it was looking for sustainable cost savings of $2.5 billion to $3.5 billion in order to reach a cost efficiency ratio target of 48-52 per cent by 2013.

It also said that it would be conducting a strategic review of its cards business in the United States, and would limit its retail banking operations to markets where it can achieve profitable scale.

It already cut 700 jobs in its UK retail banking arm in June this year out of its staff of 55,000 in the country, one of many banks that have said they will cull jobs to save costs as lenders fight off a limp economic recovery.

Standard Chartered, Llyods, Goldman Sachs, Credit Suisse and UBS are among banks that have announced job cuts in recent months, hit by rising costs and weak revenue growth.