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HSBC Set to Slash 2,000 Jobs in Commercial Banking Unit

As part of its move to slash jobs globally and control costs, HSBC Holdings plcHSBC has begun the process of reducing workforce at its commercial banking division. The news, first reported by Sky News, stated that roughly 2,000 jobs will be trimmed at the unit by the end of 2017.

These cuts will include hundreds of UK-based positions along with nearly 150 jobs in the United Arab Emirates (UAE). Apart from HSBC, several other banks including Credit Suisse Group AG, Standard Chartered and Deutsche Bank AG DB have initiated efforts to control expenses by cutting UK- based workforce.

Notably, the cuts are part of HSBC's broader efforts to lower overall operating expenses. The company had announced its plan to slash 25,000 jobs at its Investors Day conference in June.

In a statement to Sky News, an HSBC spokesman said, "As flagged in our investor update, we have targeted significant cost reductions by the end of 2017, and we continually review and manage our overall headcount requirements."

Further, the planned disposal of the bank's Brazilian and Turkish operations are expected to curtail its workforce by additional 25,000 employees. While HSBC announced the sale of its Brazilian unit to Banco Bradesco S.A. BBD for $5.2 billion, the proposed sale of Turkish arm to the Netherlands-based ING Groep NV ING is facing unprecedented delay.

The news of job cuts has come at a time when HSBC is in the final stages of reviewing its plan to move its headquarters from the UK. Notably, the plan has got support from Aberdeen Asset Management and Standard Life Investments, which are among the largest shareholders of the company.

Currently, HSBC carries a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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