LONDON, UK (WIVB) - HSBC has announced it will cut up to 14,000 jobs worldwide in order to achieve $2 billion-$3 billion in cost savings as it continues to trim its global empire. The bank employs about 5,000 workers in the Buffalo Niagara region.
HSBC is seeing sluggish growth outside Asia, particularly in Europe.
In a statement Wednesday, HSBC PLC Chief Executive Stuart Gulliver said the cuts are part of a cost-saving strategy which has already seen 52 peripheral or underperforming units close.
News 4 spoke to Mayor Byron Brown's spokesman, who says HSBC officials are telling the mayor's office the cuts will not impact Buffalo's workforce.
The bank has also trimmed 40,000 jobs from a workforce of 300,000 since 2011, and the new savings are expected to translate into additional layoffs.
Financial expert Tony Ogorek says the cuts are aimed at appeasing shareholders.
"They're getting a lot of pressure from shareholders who have given them money and expect to have a return on it it. And they're saying we need to have that stock price increase, so do whatever you can," he explained.
Europe's biggest bank by market value, HSBC announced a doubling of its profit earlier this month as it reaped the benefits of the restructuring.
Shares in HSBC were up just under 1 percent to 7.53 pounds in London at midday Wednesday.
HSBC released this statement to News 4 Wednesday afternoon:
"Buffalo is a major commercial banking and operational center for HSBC in the U.S. We are a notable private sector employer in the region, with local employees providing valuable back-office support functions to our U.S. business and serving global businesses as well. Examples of Buffalo-based teams include: IT, Legal, Compliance, Security and Customer Service (to name a few). Also, as a reminder, HSBC is focusing its employees in the downtown Atrium and Depew locations and we will continue to invest in those facilities."
Those facilities mentioned in HSBC's statement are where the 3,000 employees currently in the HSBC tower will be moving to. The bank said it would remodel the Atrium and Depew offices to fit those workers.
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