HSBC will cut up to 50,000 jobs from its workforce and sell its operations in Brazil and Turkey, the bank said Tuesday.
The changes are part of a major restructuring plan that is designed to save the bank $5 billion annually by 2017.
The sale of assets in Brazil and Turkey will reduce headcount at the bank by 25,000. In addition, another 22,000 to 25,000 job cuts are planned across the bank, which should bring the total number of employees to roughly 208,000. As part of a previous effort to cut costs, HSBC shed nearly 40,000 jobs between 2011 and 2014.
HSBC also announced that it will emphasize online banking and self-service, allowing the bank to shutter 12% of its branches. Some of the bank’s operations will be be moved to low-cost locations, and 75% of its software development will now be done in China and India.
“We recognize that the world has changed and we need to change with it,” CEO Stuart Gulliver said, emphasizing HSBC’s plans to expand operations in Asia, especially in asset management and insurance.
HSBC shares trading in Hong Kong jumped more than 1% as investors reacted to the highly anticipated announcement.
The bank is expected to reveal additional details during a conference call with investors scheduled later on Tuesday. In additional to more details on job cuts and cost savings, investors will be looking for clues as to whether HSBC will relocate its headquarters out of London — most likely to Hong Kong — at the end of the year.