HSBC boss Stuart Gulliver warns 14,000 more jobs to be cut

 

HSBC today warned that it could cut up to another 14,000 jobs worldwide as chief executive Stuart Gulliver continues to take the axe to the cost base of Europe’s biggest bank.

The latest round of job cuts will run through until 2016, and comes on top of the almost 40,000 posts that have gone since Gulliver took the helm at the start of 2011.

He said he expected the workforce to come down to between 240,000 and 250,000 over the next three years.

As with previous cuts, the bank said the next ones would include both  the sale and closure of non-core businesses and redundancies. It did not specify where the cuts are likely to  fall geographically.

Gulliver also signalled that HSBC could become the first bank in Europe to restart buying back its own shares since the financial crisis began in 2008. He said: “We are generating surplus capital every quarter. We can use that to grow the business, to increase the dividend and to tackle the dilutive effects of investors who choose to take a  scrip dividend.”

A scrip dividend is one where backers take new shares instead of cash, and is particularly popular among the bank’s Far Eastern investors. Each time such new shares are issued, it effectively pushes down earnings per share slightly. Having a share buyback would counter that effect.

Gulliver said such a move would need shareholder approval, so could probably not start until after the annual meeting in 2014. Two years into his first three-year plan, he today lifted the amount of annual cost savings he wants to see by 2016 by $2 billion (£654 million) to $3 billion. He has already cut costs by $4 billion, which was ahead of his original $3.5 billion target, and is now going for twice that figure.

He said he wants the bank to focus its growth on commercial banking in the Far East and Latin America and within retail banking on wealth management in the UK and Far East.

Gulliver did not set a new target for how many more businesses could be closed or sold, having already got rid of 52 non-core or underperforming ones. He added: “HSBC is now simpler, easier to manage and ready to  take advantage of growth opportunities. We will continue to exert tight cost discipline while streamlining processes and procedures.”

HSBC last week reported 2012 pre-tax profits of $8.4 billion, almost double what it made in the previous year. The shares today rose 5p to 751.4p.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
ebooksNow available in paperback
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Ashdown Group: Marketing Services Manager - (communications, testing, DM)

£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...

Guru Careers: Finance Account Manager

£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas