It may be the largest bank in the UK (and the only one that didn’t need a bailout back when the crash was in full swing), but it’s not immune to the need to trim the fat. Today, HSBC announced that it is cutting 3,166 existing posts, but that it was also create 2,017 new roles, which will be filled by those displaced from their original roles.
So that means 1,149 actual redundancies, most of which will come from the bank’ wealth business, according to reports, and the bank said it is moving advisors out of the wealth division into the consumer retail-banking arm (the one you and I go to to pay in a cheque).
Chief executive of HSBC Bank (just one division), Brian Robertson, said: ‘With the banking behaviour of our customers continually evolving, we must change our business to meet their needs. We are doing everything possible to offer impacted employees opportunities from the many newly created roles, and I’m confident a significant majority will remain with the bank.’
So why is the transfer being made? As part of a three-year restructuring plan, the bank’s wealth management team, which offers advice to depositors with £50,000 or more, and the main commercial advisers (who help businesses) are being combined.
In statement, the bank ‘explained’: ‘This integration of advisers means the roles of commercial financial advisers will be demised’. Yeah, we don’t really get it either – looks like rather a lot of paper-shuffling and perfunctory job title changes.
So how is the bank doing, results-wise? Well last month it posted pre-tax profits of $20.6bn – a depressed figure below City expectations because of the effect of several fines and a load of compensation paid out to those affected by the mis-selling of Payment Protection Insurance.
The changes come into effect by June this year, so we will watch with interest to see if it helps reap extra billions in the next set of full-years.