HSBC to freeze hiring, salaries to cut costs

HSBC plans to freeze staff pay and hiring globally this year as it aims to save $4.5 to $5 billion by 2017.

A spokesman for HSBC in the Middle East and North Africa Region (MENA) said he could not provide details on how the cost cutting measures would affect the United Arab Emirates or Middle East operations at this time.

“As flagged in our investor update we have targeted significant cost reductions by the end of 2017,” the spokesman told Argaam.

The bank by 2017 plans to have 12 percent fewer branches, move operations to low cost locations, and consolidate service centers to specialize in fewer businesses and processes, it said in its latest investor update.

HSBC’s decision, first reported by Reuters, comes at a tough time for the UAE banking industry, which has already seen a series of job cuts this year. First Gulf Bank, the third-largest lender in the UAE, said in November it plans to cut nearly 100 staff to save costs, while RAKBank plans to slash 250 jobs.

HSBC, Europe's largest bank, employees about 8,000 staff members across the MENA region.

Write to Reem Abdellatif at reem.a@argaam.com