HSBC cuts 1,700 jobs

Unite attacks job losses as a 'fundamental mistake'

• Julia Kollewe
• guardian.co.uk, Tuesday 3 November 2009 15.33 GMT
• Article history

Unite is urging HSBC to reconsider its strategy. Photograph: Graeme Robertson

Another 1,700 jobs are to go at HSBC, bringing the total losses this year to 3,400.

HSBC said the cuts were the result of a restructuring of its branch network management, and the merging of several debt collection and debit and credit card operations.

Unite, the UK's largest trade union, reacted with fury to the announcement, attacking the plans as a "fundamental mistake".

Southend, where 600 jobs will go, is the worst affected site. In Southampton just over 200 staff will lose their jobs, with another 110 jobs going in Sheffield, nearly 100 in Manchester and 30 in Leicester.

HSBC is moving its collection and card operations from nine sites to two new centres in Birmingham. Branch staff are mostly unaffected. Another 300 people, who are managing the branch network, will also lose their jobs but the bank has not yet decided on the locations.

The latest decision comes after the bank cut 500 jobs last December and 1,200 in March.

Rob MacGregor, national officer at Unite, said: "Unite is appalled that HSBC is choosing to cut a further 1,700 staff from across the UK. HSBC needs to urgently reconsider its strategy. At a time of strong market performance by HSBC, they should not be cutting their most crucial asset, the staff that have contributed to £3bn half-year profits and delivered market strength in a challenging financial climate.

"Unite views the loss of 1,700 staff as a fundamental mistake. The union does not believe this will do anything to improve the company's future performance. HSBC should think again before cutting its skilled and dedicated workers."

HSBC UK's chief executive, Paul Thurston, said: "Decisions that affect our people are always difficult, but this restructure is an essential part of the streamlining of our business and the migration of activities into centres of excellence around the country.

"We will do everything we can to support those of our people who are directly affected and to minimise the number of redundancies. We have a good track record of redeployment and we will make every effort to maintain it."

Unite continues to argue that the case for closure of the HSBC Southend office has not been proven.

Many of those who had been told that they would lose their jobs were low-paid workers, earning as little as £14,000 a year, the union said.

An HSBC spokesman did not rule out further job losses. "No business in the current environment can guarantee that there won't be any further reductions."