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HSBC Cuts 195 US Retail Branches; 30,000 Jobs Worldwide

NEW YORK CITY-With expected cost-savings of $1 billion, the global bank will transfer 195 of its New York and Connecticut retail assets to First Niagara Bank.

By Jacqueline Hlavenka | Updated on August 01, 2011

NEW YORK CITY-Shortly after HSBC Bank USA announced the sale of 195 of its retail branches in New York and Connecticut to First Niagara Bank, N.A. late Sunday, London-based HSBC Holdings plc, the parent company of the HSBC Group, will reduce 25,000 jobs worldwide by 2013, on top of 5,000 positions already on the chopping block, an HSBC spokesman confirms. The financial strategy, unveiled by the global bank on Aug. 1, was prompted to improve cost efficiencies, reduce operating expenses and target growth in selected markets.

In total, the proposed restructuring is estimated to save $3.5 billion over the next three years. “HSBC’s global network covers the majority of world trade and capital flows, and provides access to faster-growing economies as well as the mature economies where wealth is stored,” says Stuart Gulliver, group chief executive at HSBC, in the company’s first half results report. “In May, we articulated our strategy to become the world’s leading international bank by building on this distinctive position to leverage global economic and demographic trends.”

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