by Christopher Freeburn | May 15, 2013 10:32 am
With a lackluster global economy pressuring its revenues, HSBC (NYSE:HBC) is looking to save money by cutting more staff.
The bank announced on Wednesday that it will trim about 14,000 workers from its worldwide payroll as part of a bid to save $3 billion in costs. Bank officials indicated that HSBC is encountering difficulty meeting previously-issued return-on-equity forecasts for fiscal 2013, but could still meet those targets between 2014 and 2016, the Wall Street Journal noted.
Since 2011, HSBC has shed 46,000 workers in a bid to restructure operations and dispose of non-core businesses. It plans to focus on its operations in 22 “priority markets,” including China, Hong Kong, the U.S., U.K., Brazil, Germany and France.
HSBC is also looking to boost dividends paid to investors and may repurchase shares. The bank issued dividends accounting for 55.4% of profits last year and plans to maintain dividend payments of between 40% and 60% of profits this year.
Last year, British and American regulators accused HSBC of permitting illicit money transfers that allowed South American drug cartels to launder money.
Shares of HSBC rose fractionally in Wednesday morning trading.
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