HSBC Announces Layoffs of 30,000 Workers Globally and Sale of 195 U.S. Branches
In what analysts are predicting may just be the beginning rumble in a coming storm of layoffs in the financial sector, British bank HSBC announced its intention of laying off more than 25,000 workers by 2013. These are additional cuts to be made over and above the 5,000 layoffs that the company is currently in the process of eliminating.
HSBC has a global workforce of almost 300,000 employees, meaning its current payroll is due to be slashed by at least 10 percent. The move is going to have implications not only overseas, but in the United States as well, with some 195 HSBC branches reportedly due to be sold to First Niagara. That number is equal to approximately half of the bank's current locations in the U.S.
HSBC isn't the first bank to announce layoffs this year, but it is, so far at least, cutting the largest number of jobs. Several other banks based overseas, including Goldman Sachs, Credit Suisse, Barclay's and UBS, have all announced or are reportedly considering layoffs ranging anywhere from a few hundred jobs, as in Goldman Sachs' case, to several thousand, as is the case with Credit Suisse.
Analysts are predicting that there may well be worse news coming from the global financial sector. Some predict that the banking industry will shed as many as an additional 80,000 more jobs by the end of year, in an effort to stabilize and turn larger profits.
The slim-down in the rosters of overseas banks reportedly makes it increasingly likely that Wall Street may be forced to do the same. So far, the majority of the job cuts announced by the overseas firms have been focused outside of the United States, but the instability of the global market is already being mirrored here, with some analysts pointing to U.S. banking giant Bank of America's unsustainable workforce of 290,000 as being particularly vulnerable. Bank of America, like the global banking industry, has seen profits and stock prices drop under the weight of their lackluster revenue.
HSBC has a global workforce of almost 300,000 employees, meaning its current payroll is due to be slashed by at least 10 percent. The move is going to have implications not only overseas, but in the United States as well, with some 195 HSBC branches reportedly due to be sold to First Niagara. That number is equal to approximately half of the bank's current locations in the U.S.
HSBC isn't the first bank to announce layoffs this year, but it is, so far at least, cutting the largest number of jobs. Several other banks based overseas, including Goldman Sachs, Credit Suisse, Barclay's and UBS, have all announced or are reportedly considering layoffs ranging anywhere from a few hundred jobs, as in Goldman Sachs' case, to several thousand, as is the case with Credit Suisse.
Analysts are predicting that there may well be worse news coming from the global financial sector. Some predict that the banking industry will shed as many as an additional 80,000 more jobs by the end of year, in an effort to stabilize and turn larger profits.
The slim-down in the rosters of overseas banks reportedly makes it increasingly likely that Wall Street may be forced to do the same. So far, the majority of the job cuts announced by the overseas firms have been focused outside of the United States, but the instability of the global market is already being mirrored here, with some analysts pointing to U.S. banking giant Bank of America's unsustainable workforce of 290,000 as being particularly vulnerable. Bank of America, like the global banking industry, has seen profits and stock prices drop under the weight of their lackluster revenue.
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A musician by trade, Vanessa is a lifelong athlete and health nut that has contributed to Yahoo! News-as well as other Yahoo! sites and local newspapers-on topics ranging from music to parenting to athletics... View profile
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