HSBC to cut 6,100 jobs following 62% decline in profits
Mar 02, 2009 | Comments 0
HSBC Holdings plc (LON:HSBA) are cutting 6,100 jobs in the US from their troubled US consumer lending business. The bank has taken this decision following a drop in profits of 62%, although they are still one of the most profitable banks.
The news that HSBC is to wind down its US consumer lending operation is a huge blow to the bank, and is an embarrassing one. The bank spent billions in the Household business in 2003, only for them to close it down 6 years later.
HSCB is one bank that has so far not had any help from the taxpayer, and chairman Mr Green has said that he was “determined that HSBC should maintain its signature financial strength”. The bank needs to raise some extra cash from somewhere, so have now turned to their investors.
HSBC have announced that they are to ask investors for £12.5bn, it is hoped that this will help to strengthen the bank’s financial position.
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Filed Under: Business News
