Unions protest HSBC's plan to axe 3,000 jobs in Hong Kong

Unions protest HSBC's plan to axe 3,000 jobs in Hong Kong

2011-09-08 23:08:01 GMT+7 (ICT)

HONG KONG (BNO NEWS) -- Trade unions on Thursday gathered outside HSBC's headquarters in Hong Kong to protest against the banking giant's plan to lay off 3,000 staff during the next three years, Radio Television Hong Kong reported.

Members of the Federation of Trade Unions and the Confederation of Trade Unions protested the company's decision and described the job cuts as unfair in view of the huge profit made recently by the bank. HSBC said the move was necessary to streamline operations, increase efficiency and cut costs.

Speaking after attending an HSBC event, Labour Secretary Matthew Cheung expressed concern over the bank's plans and urged HSBC to try its best to relocate staff. He also said the Labour Department has been in touch with HSBC, providing information to the bank for employees who might be affected.

Cheung added that there are no indications to suggest a trend is emerging for banks to follow HSBC's example. He said some banks had even pledged to hire more staff, according to RTHK.

Last month, HSBC announced that it will eliminate up to 25,000 jobs by 2013 and exit operations in 20 countries as part of a major cost-cutting drive, despite reporting a rise in profit. The announcement came as the bank reported a 3 percent rise in pre-tax profits to 11.5 billion dollars for the first half-year.

The up to 30,000 job cuts equate to about 10 percent of HSBC's total workforce. The banking company, however, stressed it will also be recruiting staff by 2013.

HSBC also reported a first-half revenue of $35.7 billion, with double-digit growth in Hong Kong, the rest of Asia Pacific and Latin America. However, U.S. revenues fell.

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