Selangor Journal

HSBC closes 117 branches this year

LONDON, JAN 25: HSBC is planning to close 117 branches and reducing up to 380 employees this year in Britain in a cost-saving measure.
International Media Agency, REUTERS reported the bank saying that approximately 180 employees will be terminated in the final round of the move, marking the end of the bank’s restructuring programme in Britain.
In a separate statement, the bank said it is cutting a further 200 jobs related to information technology, following the segment being relocated to India, China and Poland where cost is lower.
The job cuts have angered workers’ union.
“Today is a dark day for hundreds of HSBC employees,” said Unite workers’ union officer, Dominic Hook.
“Unite is worried that the branch closures will prove to be a negative move, not just for the staff but also for HSBC’s loyal customers.”
HSBC said the number of customers performing transactions in branches fell sharply by 40% in the last five years, while digital transaction increased.
While the bank argued that the need to maintain an extensive branch network is no longer relevant today, critics said local branches serve as an important service especially to senior citizens and people with low income, who are badly affected by the closure.
HSBC has closed its branches faster than other main banks in Britain, with 321 closures since 2015 which represents a quarter of its network. This is according to a survey by Britain’s biggest consumer body called ‘Which?’, published last month.

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