HSBC is to cut 8,000 jobs in the UK in a move that will see its name and red hexagonal logo disappear from the high street after 15 years.
The move is part of a major restructuring of the bank, which will also result in branch closures.
The chief executive, Stuart Gulliver, said customers would be consulted on a new name for its high street operations in the UK. It already uses the brands of First Direct and M&S bank in the UK, and only removed the blue and yellow Griffin logo of Midland bank in 1999.
Presenting a strategy update for the bank, which has operations in 70 countries, Gulliver said it was too early to say if HSBC would remain the long-term owner of the UK business, which it bought in 1992 when it took over Midland.
HSBC is awaiting the final rules on the ringfencing requirements that come into force in 2019, which require banks to protect their high street operations from other parts of their businesses. The regulatory changes were drawn up by the Vickers commission.
HSBC has gone further than other UK banks in outlining how its ringfenced bank will operate. It will be based in Birmingham and employ 26,000 people. Another 14,000 will be employed in an operations hub to support the business, known as ServCo. The bank has just over 1,000 branches in the UK.
Gulliver said he did not expect any change to the need to create a ringfence but is looking for clarity on the amount of control the holding company would have over the UK business after 2019. “The regulation is fixed. We are moving to execution on this,” he said.
In total, HSBC employs 48,000 people in the UK, including 4,000 in investment banking. The 8,000 job cuts earmarked for the UK are part of 25,000 being lost from its global workforce as Gulliver attempts to cut costs to boost returns to shareholders. Another 25,000 are being lost as he sells off two businesses, in Brazil and Turkey.
This article was written by Jill Treanor, for theguardian.com on Tuesday 9th June 2015 11.55 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010