HSBC plan to axe 1,700 jobs ‘fundamental mistake’

HSBC’s plan to cut 1,700 jobs is a “fundamental mistake” that will not improve the bank’s future performance, Unite union has warned.

The banking group announced plans yesterday to axe the jobs from support services in its retail banking division. This is on top of the decision to cut a further 2,900 jobs, already announced at the bank earlier this year.

Unite national officer, Rob MacGregor, said: “Unite views the loss of 1,700 staff as a fundamental mistake. The union does not believe this will do anything to improve the company’s future performance. HSBC should think again before cutting its skilled and dedicated workers.”

He added he was “appalled” the bank was cutting jobs when it had made £3bn in half-year profits and delivered market strength in a challenging financial climate.

However, HSBC said in a statement it would create hundreds of new roles over the coming year, and said the redundant posts will be cut over the next 12 months.

UK chief executive Paul Thurston said: “Decisions that affect our people are always difficult, but this restructure is an essential part of the streamlining of our business and the migration of activities into centres of excellence around the country.”

HSBC employs 40,000 people in its UK retail operations, and more than 300,000 employees worldwide.

Unite argued that the closure of HSBC centres in Southampton, Sheffield and Southend will damage the surrounding regions and said that the case for closure of the Southend centre had not been proven.

Meanwhile, the union warned that the sell-off of parts of Lloyds and RBS could result in more than 25,000 redundancies.

Comments are closed.