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Kin Cheung/AP

Europe's biggest bank will shed up to 50,000 workers on its 150th anniversary

HSBC could shift its base from the UK to Hong Kong.

Updated 13.56

SCANDAL-PLAGUED HSBC WILL cut its global workforce by up to 50,000 as it axes staff, sells off parts of its operations and weighs up permanently shifting its base to Asia.

The bank, Europe’s biggest by market capitalisation, has been considering ditching its London headquarters as it shifts its attention to China and other fast-growing Asian economies.

Its chief executive, Stuart Gulliver, said the bank was “adapting to structural changes in the operating climate” as it unveiled plans to cut up to 25,000 staff as it tried to trim between $4.5 billion and $5 billion from its costs before the end of 2017.

He confirmed up to 8,000 jobs in Britain would be axed as part of the changes, which also included 25,000 workers going under a plan to offload its operations in Turkey and Brazil.

HSBC’s retail bank would also be rebranded and shifted from London to Birmingham by 2019. The total headcount reduction would represent almost 20% of its workforce.

It is not known how many of the bank’s estimated 400 workers in Ireland are facing the axe.

Job cuts at HSBC Andrew Matthews / PA Wire Andrew Matthews / PA Wire / PA Wire

Scandals

HSBC has been hit with a string of scandals in recent years, including revelations the bank’s Swiss arm helped wealthy clients including politicians, celebrities and suspected criminals evade taxes.

The so-called “Swissleaks” files of secret accounts included 358 with links to Ireland, although Revenue has said only 33 of those cases were worth investigating. Those probes have yielded about €4.5 million in back-taxes, interest and penalties.

Last year HSBC was also fined a total of over €500 million in the UK and US as one of six international banks caught rigging foreign exchange markets.

There have already been swingeing jobs cuts at the bank since Gulliver joined as the company’s head in early 2011, while a review into where it would be based was due to be finished later this year.

289197722_9386e4afc8_b Philip Choi Philip Choi

The bank has complained about the cost of regulation and taxes in the UK, and it has been tipped to move to the low-tax Hong Kong, where it was established in 1865.

Banking analyst Francis Lun said HSBC “may have overdone it” with the planned job cuts as there was a risk there wouldn’t be enough remaining workers to run the bank’s operations properly.

However he said Asia could prove a friendlier environment for the bank as European and US regulators still wanted to “get even” with lenders after the financial crisis.

There’s no future for major international banks in Europe and America, no matter how much money you make or save.”

- With AFP

First published 10.57am

READ: IBRC is worried that their legal advice over Denis O’Brien will be made public in the Dáil >

READ: Breaking the law has cost financial institutions €27 million since 2011 >

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14 Comments
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    Mute Maire 1.25% Ben
    Favourite Maire 1.25% Ben
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    Jun 9th 2015, 11:04 AM

    When are we ever going to get the names of the 350 + Irish Tax Defaulters? #hsbc Name and Shame

    129
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    Mute Brian Ward
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    Jun 9th 2015, 12:14 PM

    The people who hid money in those accounts, have and are being prosecuted. It’s been ongoing since 2011 and some names of those convicted have been in the papers. The other account holders had money in there legally if they declared it to the taxman. There is nothing illegal with having an offshore account so long as you inform the Revenue.

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    Mute Cathal McDonald
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    Jun 9th 2015, 12:00 PM

    Rip off merchants of the HIGHEST order. The amount of red tape and charges I incurred while trying to close my HSBC account in UK when moving home a few years ago still makes my blood boil.

    105
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    Mute Philip
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    Jun 9th 2015, 12:35 PM

    Amazing over 7 years after the crisis and governments still havent implemented any major regulations

    If the crisis happened today, the FG government havent introduced any new laws that would bring those who caused the crisis to justice

    87
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    Mute TheJeff
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    Jun 9th 2015, 2:26 PM

    No law against been just Stupid

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    Mute Paul Roche
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    Jun 9th 2015, 3:12 PM

    You can’t fix stupid, but you can make it unlawful for banks to be run that way.

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    Mute Jack Bowden
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    Jun 9th 2015, 3:59 PM

    To be fair, HSBC didn’t involve themselves with reckless lending and they didn’t need to be bailed out by tax payers.

    23
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    Mute Pádraig McCann
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    Jun 9th 2015, 2:12 PM

    That’s a great start to their anniversary!

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    Mute Andrew
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    Jun 9th 2015, 2:29 PM

    HSBC = Highly Suspect Banking Criminals

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    Mute Old Gordon
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    Jun 9th 2015, 3:23 PM

    HSBC are some bank.

    Money laundering,
    Rate fixing,
    Tax Evasion.

    35
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    Mute Jack Bowden
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    Jun 9th 2015, 4:08 PM

    I think it was Barclays Bank, not HSBC that was involved in rate fixing but yeah they were involved with laundering money and tax evasion.

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    Mute John Judd
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    Jun 9th 2015, 2:33 PM

    Typical due to the actions of a small few 50,000 people suffer good job HSBC!

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    Mute John R
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    Jun 9th 2015, 4:15 PM

    It’s no wonder they want to move to the Far East. Less regulation. They have apparently learned nothing. And according to the banking specialist cited above there is no future for international banks in the US or Europe because of regulation. What a load of self serving hyperbole. These masters of the universe make me unwell. Their arrogance is utterly astounding. They have no loyalty to anyone including their own staff who have to pay the price for their incompetence caused by a lack of oversight, a lack of regulation and a lack of proper prudence in conducting their affairs. But the problem is apparently ‘regulation’. One would despair. Let them decamp. If they are not willing to conduct themselves then remove their banking licences and they can do business with those who want lower standards.

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    Mute An Lámh Láidir
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    Jun 10th 2015, 9:16 AM

    How a bank rewards loyalty.

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