HSBC is to cut 150 jobs in the retail, commercial sectors in UAE
HSBC is to cut jobs in its retail and commercial banking sectors in the United Arab Emirates (UAE), as part of its strategy to lower growth in the Gulf Arab state. Economic growth in the UAE has been stalling due to lower oil prices resulting in cuts in state spending, which is hitting the local banking system, including through increased default rates among the small and medium-sized businesses. In June, the bank had announced it intended to cut 50,000 jobs worldwide, so as to combat sluggish growth and boost dividend payments.

Dubai: HSBC Middle East has cut more than 150 jobs from its UAE banking operations as part of its global cost cutting efforts.

A spokesperson for the bank confirmed the job losses, but declined to comment on the total numbers.

Sources in the bank said the number of announced job loss this month is about 150 in the UAE, but it could be higher as full cost reduction programme is implemented across all divisions in the country.

“As flagged in our Investora Update we have targeted significant cost reductions by the end of 2017, and we continually review and manage our overall headcount requirements,” HSBC said in an emailed statement to Gulf News.

Sources in the bank said job losses announced are mainly in bank’s retail banking, commercial banking and wealth management divisions. But there are talks of more job cuts to come in the months ahead.

HSBC Holdings announced in June this year that it plans to shed 50,000 jobs over the next two years by closing retail branches, shrinking its investment bank and selling its Brazilian and Turkish operations as it shifts resources to more promising Asian markets.

While half of this targeted job cuts are to come from a major global restructuring, a further 25,000 jobs are expected to be cut as the bank sells off its operations in Turkey and Brazil. This number also includes 8,000 in the UK — one in six — with other losses unspecified. Turkey and Brazil were described in a 10-point action plan as the “biggest drags on the business.”

According to the plans announced in June this year, in total, the bank aims to shed a fifth of its total 266,000 workforce to cut costs by as much as $5 billion (Dh18.4 billion) annually by 2017.

The plan also includes steps to revamp the US and Mexican businesses. The bank plans to close 12 per cent of branches in all its seven biggest markets.