HSBC to Cut 30,000 Jobs by 2013

Europe's largest bank, HSBC Holdings PLC HBC, announced Monday a cost-saving initiative to cut 30,000 jobs from its workforce by 2013. First half earnings were announced, with the bank reporting net income of $9.22 billion. Commercial Banking profits were up 31% for the half, but the deep layoffs are carrying headlines. The cuts equate to roughly 10% of the company's 300,000+ employees. HSBC management is hoping to reduce expenses by $3.5 billion over the next few years, echoing similar measures by other big banks, including Goldman Sachs GS. CEO Stuart Gulliver explained that administrative positions would likely face the chopping block first. “What we're talking about is removing a lot of back, functional head office support staff where we believe we have created an unnecessary bureaucracy in this firm over a number of years,” Gulliver said. Notably, the HSBC Board declared two interim dividends of $0.09 per ordinary share, which is 12.5% higher than last year. HSBC's Group Chairman Douglas Flint commented: "Good progress has been made during the first half of 2011 in setting the necessary course to build further sustainable value from HSBC's many advantaged positions in attractive markets and customer-facing businesses."