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Job cuts expected with HSBC update

Published 08/06/2015

Stuart Gulliver's plans will reportedly affect between 10,000 and 20,000 roles at HSBC, with its investment arm said to be in the firing line
Stuart Gulliver's plans will reportedly affect between 10,000 and 20,000 roles at HSBC, with its investment arm said to be in the firing line

HSBC boss Stuart Gulliver is reportedly set to announce thousands of job cuts when he presents an update to investors tomorrow.

Mr Gulliver's plans will reportedly affect between 10,000 and 20,000 roles at the group, with its investment arm said to be among parts of the company in the firing line.

The chief executive could also reveal more details of how HSBC will decide where to base its headquarters, after announcing recently that it was considering a move away from the UK following "regulatory and structural reforms".

HSBC has been hit by Britain's banking levy - which last year cost it 1.1 billion US dollars (£720 million) - as well as new industry rules on "ringfencing" retail banks serving customers and business clients from more risky investment divisions.

The head office of HSBC's UK retail bank is being relocated from London to Birmingham by 2019 amid the new rules and HSBC is said to be considering a sale of the business, which was known as the Midland before being swallowed up by it in 1992.

This week's HSBC update comes a day ahead of George Osborne's Mansion House speech, amid speculation about whether the Chancellor will signal a review of the bank levy.

Mr Gulliver will reportedly be attempting to reassure shareholders that management focus on cutting costs remains undiminished after a series of recent scandals. HSBC has 48,000 of its 257,000 staff in the UK.

The bank is also likely to be scrutinised over underperforming parts of the business, such as the US, Mexico, Brazil and Turkey.

The update comes as HSBC is also in the spotlight after last week being hit with a 40 million Swiss franc (£28 million) fine to settle an investigation by prosecutors in Geneva into alleged aggravated money laundering.

Authorities raided the premises of the group's controversial Swiss private bank in February, following allegations that it helped to hide millions of dollars for arms dealers while helping others avoid taxes.

The investigation came about after an ex-employee leaked a list of thousands of suspected tax evaders to French authorities in 2008.

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