HSBC to cut another 25,000 jobs

@CNNMoney August 1, 2011: 8:05 AM ET
HSBC to cut another 25,000 jobs

An additional 25,000 job cuts brings the recent total at HSBC to 30,000.

NEW YORK (CNNMoney) -- HSBC announced Monday that it will cut 25,000 more jobs around the world, in addition to the thousands of job cuts already underway, after reporting a surge in profit.

HSBC (HBC) Chief Executive Stuart Gulliver said he expects to cut 25,000 jobs between now and 2013. The company's stock rallied 5% in pre-market trading.

This is in addition to the 5,000 job cuts that have been underway since the start of year in the United States, United Kingdom, France, Latin America and the Middle East. The cuts are part of the company's restructuring plan to save from $2.5 billion to $3.5 billion.

The banking company also posted increased profit. HSBC reported a net income of $8.9 billion for the first half of the year, up 35% from the first half of 2010.

The finance company reported earnings per share of 51 cents in the first half, up 34% from the first half of 2010.

HSBC did not specify where the new job cuts would be taking place. But it said it would be selling 195 U.S. branches, principally in western New York, to First Niagara Bank (FNFG).

9 most annoying bank fees

HSBC also said it was closing its retail business in Russia and Poland, and shutting down three insurance businesses.

Gulliver said he had a positive outlook toward emerging markets, highlighting China and the Middle East, despite his "clear short-term concerns."

"The geopolitical and regulatory backdrop is uncertain and presents challenges for the developed economies," he said.

-- CNN's Mishan Afsari contributed to this story.  To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed4.00%4.04%
15 yr fixed3.10%3.12%
5/1 ARM3.19%3.25%
30 yr refi4.08%4.12%
15 yr refi3.18%3.21%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
CNNMoney Sponsors

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.