HSBC to cut 1 100 jobs worldwide

The cuts will be made in the global banking and market division, with around half of those losing their jobs in HSBC's British operations, Hong Kong-based spokesperson Gareth Hewett said.

"The steps we have taken today are in the light of the current global business and economic environment and our cautious outlook for 2009," he said in a statement.

"Markets continue to be challenging and difficult but our strategy leaves us well positioned for the next wave of global growth, when it comes."

Around 100 jobs will go in Hong Kong. The jobs would be cut in both front and back office operations, Hewett said.

The statement said that profits for the bank were $2.7bn in the first half of 2008, down 35% over the first half of 2007 but 37% higher than in the second half of 2007.

HSBC employs around 330 000 people worldwide. The global banking and market division includes investment banking, treasury and trading operations.

Last week, the bank said it had scrapped a $6bn deal to buy a major South Korean bank after the international credit crisis cut asset values worldwide.

HSBC said in it had terminated the deal to buy a 51% stake in Korea Exchange Bank (KEB) from US buyout fund Lone Star, "taking into account all relevant factors including current asset values in world financial markets."

Global markets have been in the doldrums for the past year over worries about access to credit, stemming from the dire state of the US housing market and unwise lending.

The situation has worsened in the past two weeks as major financial institutions have required government-backed rescue packages, and investment banking giant Lehman Brothers was forced into bankruptcy.

- AFP