HSBC Holdings is cutting 30,000 jobs globally by 2013 in a bid to slash costs by up to $3.5 billion.

Twenty-five thousand additional job cuts will be made on top of a previously announced plan to cut 5,000 jobs, largely in the UK, France, US Middle East and Latin America. The company is yet to specify where this larger round of cuts will be made though they are likely to be largely in its matured markets. The company currently has around 296,000 employees globally.

Profits rise

Profits in the first six months of 2011 rose by 36 per cent to $9.2 billion. The cost efficiency ratio, or costs in relation to revenue rose to 57.5 per cent in the six months, from 50.9 per cent from a year ago, though fell from 59.9 per cent in the previous half year.

The company attributed the rise to higher wages particularly due to competition for employees in Asia and higher staff numbers.

During the period, the company also raised its presence in those areas, taking on some 1,000 new staff in Hong Kong and 1,500 in Asia Pacific.

Asia-Pacific and Hong Kong delivered the strongest performances, with profits rising by 32.6 per cent to $3.7 billion and 26.9 per cent to $3.08 billion respectively.

“I am pleased with these results which mark a first step in the right direction on what will be a long journey,” said Chief Executive, Mr Stuart Gulliver.

However, the company remains concerned about sluggish growth in Europe and the US , and regulatory changes targeted at the banking sector in the UK, he said. The bank recently announced it is closing its Polish and Russian retail businesses and on Sunday said it would be selling a branch network of 195 branches in the US largely in upstate New York.

“Our clear focus is to concentrate HSBC's capital allocation and resources on the market segments which we are best able to serve competitively and efficiently,” said the Chairman, Mr Douglas Flint.

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