HSBC Cuts Jobs In The U.K.
HSBC Holdings PLC announced its intention today to cut approximately 1,150 jobs in the United Kingdom as it changes its business model of financial advisement to wealthy customers. The bank has been shifting its focus to specific locations and its wealth management sector. HSBC’s change has eliminated the role of commercial financial advisers; “moving financial advisers currently in the wealth division into retail” and effectively consolidating financial advisement into one department. The bank has cut 37,000 jobs from 2010 to 2012 to cut costs and remove itself from unsuccessful businesses; other banks in the United Kingdom have followed suit, Lloyds Banking Group PLC and Barclays PLC have cut hundreds of jobs since the start of this year.
Modern society has developed to an extent such that all economies are now intertwined. The private sector is cutting spending not only in the U.S. but other countries as well. This is not a promising trend and in my opinion is an indication for poor job growth in the U.S.
Source: The Wall Street Journal