Europe’s largest bank, HSBC, has begun laying off 850 Information Technology (IT) workers across Britain today. The first step under a restructuring objective which will get rid of around 8,000 British jobs and looks at eliminating 50,000 globally by the end of 2017.
This colossal restructuring will shut down around one in five jobs around the world and about a sixth of the jobs in Britain. HSBC’s business plan is designed to improve earnings damaged by high compliance costs, fines and low interest rates by closing the under-performing businesses.
A large part of this overhaul plans to shift applications to the cloud and shifting the development side towards lower cost economies such as China and India. These two parts of the world will acquire around 75% of shares saving around $525 million.
HSBC expects to make a total saving of over $1 billion and a further $500 million will be put up from consolidating suppliers.