HSBC cuts 1,200 UK jobs

Wednesday, 25 March 2009 10:16

HSBC is to cut 1,200 jobs in the UK, but the bank maintains no branch positions will be lost but UK call centres will be cut.

Redundancies will be focused on bank room operations and call centres - following 500 job losses from the bank's London headquarters announced in December.

A call centre in Newport will close, while cut backs will occur at further sites. Staff are being informed today.

HSBC has not turned to the UK government to aid it through the financial crisis and has maintained a profit.

However, it did announce a £12.5 billion rights issue to raise extra funds from shareholders to build up its capital reserve.

HSBC UK managing director Paul Thurston said: "The operating environment for banks in the UK is extremely challenging and will remain so for some time.

"There are difficult decisions that have to be made as we adapt to a new environment, and ensure we are positioned for the future. We deeply regret that these have led to the announcement of redundancies but, as you would expect, we will do everything we can to help and support those of our colleagues who are affected."

Unions have hit out at the job cuts.

Derek Simpson, Unite Joint General Secretary, claimed a total of 2,900 jobs were to be lost.

"This decision will ravage a number of local communities as sites are closed and other work is sent abroad," he said.

"Customers of HSBC will be furious to learn that the company only believes you deserve to have a local banking service if you are a wealthy premier customer, this makes a mockery of their claim to be 'the world's local bank'."

He claimed customers on basic and standard current accounts would be serviced from Indian call centre - leaving those paying for accounts receiving UK service.

"HSBC is a profitable institution and the announcement today is simply using the financial downturn as a pretext to make redundancies," Mr Simpson said.

"Workers at the bank will be alarmed at the pace at which this announcement is being rushed through, the bank is cutting corners in its failure to consult appropriately with the union."

Tim Pie, HSBC spokesperson, hit out at the claims from Mr Simpson that UK basic customers on standard accounts were losing out to those paying for premier accounts.

"We have call centres in India, the Philippines, Malta, Wales, Scotland and England; that is the reality of global business" he said.

"We do not subcontract operations and all staff are HSBC employees with the saem performance assessment."

He added: "Mr Simpson's assumption that people on standard current accounts are given a lesser service is not the case. There are no greater complaint levels from foreign call centres than Wales."

He did admitted premier customers have had British-based call centres only for three years, but this was because their needs were more complex.

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