HSBC cuts 1,100 jobs

News Article - 26 September 2008
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HSBC is to cut 1,100 jobs globally and has said the problems in the financial markets are to blame.

Back-room employees in its global banking and markets operation will be affected, with roughly half the cuts taking place in the UK, including at the headquarters of its investment banking division in Canary Wharf, London.

HSBC reported last month that its half-year profits had fallen 28 per cent to $10.2 billion (£5.2 billion), with pre-tax profits falling 35 per cent to $2.1 billion (£1.1 billion).

A spokesman for the firm said the move was necessary for its business plans.

"We're doing it because of market conditions and the economic environment, and our cautious outlook for 2009," he said.

Washington Mutual has become the biggest American bank to fail in the credit crunch so far, after being closed and sold by the Office of Thrift Supervision, its regulator.

JPMorgan Chase has bought its assets for $1.9 billion (£1 billion).

The USA has seen the biggest bank to fail in the credit crunch so far, Washington Mutual, closed and sold by its regulator.

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