HSBC Announces 1200 Job Cuts in UK; More to Follow

The economic recession that has gripped the globe is making its mark almost everywhere these days. The news that one hears almost every day now about layoffs in one large group or the other has almost become routine now.

HSBC is Europe’s biggest bank, employing 58,000 people in Britain alone; and 312,000 people across the world. Just today, HSBC has announced 1200 job cuts in Britain, citing that the operating conditions for the economy hit banking industry are “extremely challenging” and the near future doesn’t promise any reprieve either.

According to union representatives, the effect of this announcement would result in 2900 job losses in all. Though a spokesman from HSBC has said that 1200 people are being told that that their jobs might be at risk. This number of course does not include the already vacant position or those being left vacant due to natural attrition or employees leaving at the end of contractual periods.

It is expected that many of the staff that have been retained will be put into new positions or given additional responsibilities to cover up for those that have been let go.

Unite, the union representing HSBC employees, has claimed that this decision by HSBC has been taken to outsource servicing of basic and current accounts to India, despite the profitable status of the bank. They have further accused that the economic recession is being used as a pretext to downsize and outsource, something that HSBC doesn’t need to do.

HSBC has stated that the most of the cuts will be in processing and operations, with a slight impact on finance, human resources and information technology. According to their official statement, no customer service staff in branches will be affected.

What’s noteworthy is that HSBC did the same exercise last December when they cut 500 jobs in UK, following a review of the business. And before that, 1100 investment banking jobs were axed last September.

Whatever the reason for axing of these jobs is, what concerns me is the impact of such decision on the smallest level, i.e. the person who is loosing their job; and at the greatest level; i.e. the impact on the economy of the world and the state it is in right now.

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