The bank, Europe's biggest, which has not been involved in any of the government bail-outs and capital injections, has not been immune from the savage downturn in world markets.
It announced this morning it is cutting about 1,200 jobs in Britain, saying the operating environment for the battered banking industry was "extremely challenging" and would remain so for some time.
The banking trade union Unite says the changes would result in 2,900 jobs being lost and described the news as "a kick in the teeth" for staff.
A spokesman for HSBC said 1,200 people were being told their jobs were at risk. That figure does not include vacant positions that won’t be filled, natural attrition of staff and the end of contracted positions, the bank said. Many staff are also expected to be put into new positions.
HSBC said most of the cuts will be in processing and operations, with some losses in finance, human resources and information technology. But no customer service staff in branches will be affected, the bank said in a statement.
The bank will be closing an operations centre in Leamington Spa, central England, affecting 290 jobs and another in Newport, Wales, affecting 90 staff.
HSBC cut 500 jobs at its UK banking business in December after a review of the business, and axed 1,100 investment banking jobs last September.All told, the bank employs about 58,000 people in Britain and 312,000 people globally.
While it has avoided state aid, it has just announced a huge £12.5 billion rights issue cash call on shareholders to strengthen its finances - the biggest in UK corporate history.
Shares in the bank were steady at 391p this morning.
Banks have been cutting staff and trying to raise money as they struggle to cope with the worst crisis since the Great Depression in the 1930s. The Royal Bank of Scotland, which has been bailed out by the government in exchange for stakes, has said it will cut 2,700 jobs in the UK. In January, Barclays cut 4,200 jobs from its UK banking business, with half coming from back office operations and the other half coming from its fund management, private banking and investment banking units.
Insurers Royal Sun Alliance, Legal & General and Standard Life have all said they will cut jobs.
More bleak news from the financial sector came today from Legal & General Group PLC, Britain’s third-largest insurer. It has reported a £1.07 billion loss for 2008 due to investment losses. It has cut its dividend.The shortfall compared with a profit of £724 million pounds in 2007.Legal & General shares fell 4.7 per cent to 40.8 pence in early trading.
