HSBC to cut 8000 jobs in the UK

[denphone]

HSBC to cut 8000 jobs in the UK.

http://www.bbc.co.uk/news/business-33058957

HSBC, Europe's biggest bank, is planning to cut 20,000 jobs around the world as it tries to reduce costs and simplify its business.

That accounts for more than 7% of its 266,000 jobs globally. About 8,000 of those cuts will happen in the UK.

The bank will also sell businesses in Turkey and Brazil, it said on Tuesday.

HSBC confirmed that it was reviewing whether to move its headquarters out of the UK, and will make a decision by the end of the year.

[heero_yuy]

It's only the start, with the rise of alternative funding sources such as peer-to-peer that are much more efficient the banks will have to significantly cut the difference between deposit and loan rates to survive. That means less staff, buildings and lower profits.

If that means an end to the obscene bonus culture that caused much of the banking chrisis I for one shall not shed a tear.

[Osem]

I dare say the cuts will be where the numbers are - mainly lower-middle ranking staff who've had nothing to do with the sort of shenanigans which result in fat pay packets and bonuses.

Given all the regulatory changes and rulings concerning the 'mis-selling' of products etc., there could still be years of heavy fines to come. These fines will impact on profits and that will impact further on jobs. and business models. The days when the banks ran riot may be over but we're all going to be paying for all the wrongdoing and excess in one way or another. Many of those who've taken the money and run will probably never be punished but plenty of ordinary bank staff will suffer as former Britannia and Co-op Bank staff have found out.

Pretty bad news. Doesn't bode well for the future of their HQ in London.

Originally Posted by heero_yuy

It's only the start, with the rise of alternative funding sources such as peer-to-peer that are much more efficient the banks will have to significantly cut the difference between deposit and loan rates to survive. That means less staff, buildings and lower profits.

If that means an end to the obscene bonus culture that caused much of the banking chrisis I for one shall not shed a tear.

The likes of HSBC will be ok. The day-to-day retail banking that peer-to-peer will 'disrupt' is relatively small fry for them. Most of HSBC's business comes from Asia and Investment banking. The reason they may leave is probably not because the average family is deciding to go elsewhere to deposit their few thousands pounds but because we're taxing them on their entire profit with the banking levy.

As I said most of their business is in Asia but the Levy is applied to the entire profit generated by the bank so they're making the money over there and getting taxed here. It doesn't make sense for them to let that continue. The UK operation isn't irrelevant but it's not critical either.

Osborne may change the rules so it only applies on UK profit in a speech tomorrow which might help them stay. He probably should do it as the UK really shouldn't be losing one of the biggest banks in the world to Hong Kong. A smaller tax income is better than none at all after all.

[Hom3r]

I wonder if the "Midland Bank" will come back?

[v0id]

Originally Posted by Hom3r

I wonder if the "Midland Bank" will come back?

It would be nice to see the Griffin back on the high street

Midland Bank is one of the suggestions the papers have mentioned. The other is that they could expand First Direct to the highstreet. I think the latter makes sense as it's now a more established brand plus the concept of a phone/internet bank as a unique concept is a bit redundant now that the high street banks are heading that direction anyway.

I still want my pound of flesh..I don't think any of them have made up for their behaviour and the resultant crash and the 5 years of austerity.

Originally Posted by Maggy J

I still want my pound of flesh..I don't think any of them have made up for their behaviour and the resultant crash and the 5 years of austerity.

HSBC weren't one of the banks requiring a bailout or really one of the ones that got into trouble, not that they haven't had their scandals...

[nomadking]

Originally Posted by Maggy J

I still want my pound of flesh..I don't think any of them have made up for their behaviour and the resultant crash and the 5 years of austerity.

The 5 years of austerity are largely due to the excessive spending ie borrowing, long BEFORE 2008.

---------- Post added at 20:41 ---------- Previous post was at 20:25 ----------

Originally Posted by Damien

I would say the massive crash in 2008 is probably more to do it. Labour can be blamed for leaving the country ill-prepared for it by running deficits which could be said to have prevented the ability for us to spend our way out of recession as well as making the cuts seem worse. However to say that it was the deficits and not the crash that caused the problems of the following years is to swallow a line that not even the Tories are peddling.

The excessive borrowing meant that cutbacks, ie austerity, were required to bring spending and borrowing under control. If you are excessively spending £50-60bn(£40bn borrowing + >£10bn surplus) annually before 2008 and in the supposed good times, that is the level of spending cuts that would be required even if any crash hadn't happened.

[Hom3r]

Originally Posted by v0id

It would be nice to see the Griffin back on the high street

Still using this, have the dictionary, card holder, holdall & pencil case

[Pierre]

What's the problem?

Evil bankers, we can all dance whilst they all burn in hell, greedy *******s.

.??????

It's not like they're nurses.

What? You mean these are normal hard working families that don't work for the NHS?

**** em then!

[Horizon]

Originally Posted by Damien

Pretty bad news. Doesn't bode well for the future of their HQ in London.

I think it's almost a certain that their HQ will move back to Hong Kong.

Originally Posted by Damien

The likes of HSBC will be ok. The day-to-day retail banking that peer-to-peer will 'disrupt' is relatively small fry for them. Most of HSBC's business comes from Asia and Investment banking. The reason they may leave is probably not because the average family is deciding to go elsewhere to deposit their few thousands pounds but because we're taxing them on their entire profit with the banking levy.

As I said most of their business is in Asia but the Levy is applied to the entire profit generated by the bank so they're making the money over there and getting taxed here. It doesn't make sense for them to let that continue. The UK operation isn't irrelevant but it's not critical either.

Osborne may change the rules so it only applies on UK profit in a speech tomorrow which might help them stay. He probably should do it as the UK really shouldn't be losing one of the biggest banks in the world to Hong Kong. A smaller tax income is better than none at all after all.

I used to think that too, but to be honest HSBC turned Midland into what used to be a decent high street bank into a global criminal cartel. I say let them go, because who knows what other scandal is lurking around the corner with them.

[Kursk]

When HSBC go I hope Midland Bank don't make a 'come back'. It sounds so old fashioned.

A new Bank, The Piggy Bank, would have a wide appeal and it would be ok for its management to tell porkies. 'Getting your snout in the trough' would be positively encouraged and homosexuals would be happy if the logo was pink. Kids will find it easier to grasp the banking concept and women would squeal in delight at a little pink animal on their credit card.

Ed Miliband might struggle to swallow the idea .

[heero_yuy]

Originally Posted by Kursk

Ed Miliband might struggle to swallow the idea .

Depends if he can control the gag reflex.