HSBC axes 1100 jobs worldwide, 500 in the UK

Jorumian

Facilitator
Sep 1, 2008
347
3
0
Birkenhead
The HSBC has announced it is cutting 1100 jobs worldwide, with 500 going in the UK alone, many based at the companies investment banking division premises in Canary Wharf.

BBC NEWS | Business | Bank giant HSBC axes 1,100 jobs

I really don't know what to make of this. They say this is because of a 35% fall in profits, but at the end of the day, this is still profit. And several billion pounds worth of profits at that. It can be argued that this is prudent housekeeping, avoiding complications in the future in a market situation which is at best volatile, and at worst, in meltdown. However it can equally be argued that it is just a case of no matter how much money some companies, make it is never enough. Obviously this is all linked in with the global economic situation, however I feel that the HSBC would be more justified in cutting these jobs if they had made a loss in this period, rather than simply earning 35% less more than they previously did.
 

Matt26

Facilitator
Aug 27, 2008
45
0
0
Guildford
Any bank that doesn't show a decline in profits right now must have a sideline in the heroine trade or something!

What worries me is there's no less work in a credit crunch or a recession. Can over a thousand people really leave without being missed?

Being one of the banks best prepared for this whole thing, why not keep people on and take the temporary hit? While everyone else is panicking, you'll be keeping youself in a position to inherit the earth when things pick up again.