HSBC to cut 8,000 Staff to Reduce Costs

HSBC are to make more than 8,000 staff members redundant in a bid to reduce costs and restructure the bank.

The bank, which currently employs more than 48,000 employees in the UK will make cuts in both its retail and investment banking operations, however, HSBC insist that with a staff turnover of more than 3,000 people, many of which are natural, they will look to keep redundancies and settlement agreements to a minimum.

In a statement by chief executive Stuart Gulliver, the changes and motivations for the cuts were revealed. He said: "We recognise that the world has changed and we need to change with it. That is why we are outlining the following strategic actions that will further transform our organisation.

“The 10-point plan aims to cut costs by up to $5bn (£3.25bn) and increase investment in Asia - particularly in China.

"Asia [is] expected to show high growth and become the centre of global trade over the next decade. Our actions will allow us to capture expected future growth opportunities."

“Natural Attrition.”

Chief executive Stuart Gulliver said the jobs would go by "natural attrition" with more than 10% of the 266,000 workers across the world expected to be affected by changes and reforms from the bank.

As part of the reforms, the bank will change its name on the UK High Streets in order to move away from some of the negative connotations associated currently with the HSBC brand.

Dominic Hook, the national officer with the union Unite, called on HSBC to achieve any job cuts through voluntary means and natural attrition. He said: "It's really sad that all our members, all the hard work they've done to try to get the bank back working properly after all the scandals of the last few years, are going to be paying with their jobs."

HSBC has also threatened to move its headquarters out of the UK and will make a decision by the end of the year.

Settlement Agreements

Although a substantial number of job losses will be due to staff turnover, it is expected that some may be offered settlement agreements or voluntary redundancies when restructuring. These can prove to be useful for both employers and employees. Settlement agreements allow workers to receive a substantial amount of money whether it be for an employment dispute or a redundancy. Items can be added to a settlement such as a good reference or other incentives. They can also prove useful for employers who can state the time that former employees must remain out of work in certain sections. Furthermore, they can be used to ensure that inside knowledge or skill is not passed on to competitors. If you are offered a settlement agreement, it is important to note that it does not need to be accepted but can be negotiated or rejected entirely.

Contact Us

If you require support or advice regarding any matter of employment, whether it be a settlement agreement or redundancy, our team of solicitors can offer you the support and representation required. Get in touch today using our online contact form.