HSBC announces 1,200 UK job cuts

HSBC UK managing director Paul Thurston revealed the decision had been made after an operational review of the business. Those affected are being briefed today.

He said: "The operating environment for banks in the UK is extremely challenging and will remain so for some time.

"A strong, well capitalised and profitable bank like HSBC can stay open for business, respond to the changing needs of its customers and continue to serve them even when times are tough.

"But there are difficult decisions that have to be made as we adapt to a new environment, and ensure we are positioned for the future. We deeply regret that these have led to the announcement of redundancies but, as you would expect, we will do everything we can to help and support those of our colleagues who are affected."

HSBC has not received a bail-out from the Government during the downturn, but it has already announced plans to reduce staff. It released plans to cut 500 head office and operations jobs in December, most of which are to affect Canary Wharf employees.

It is expected that 100 jobs in London will be affected by the latest round of job losses, the majority of which will be Canary Wharf-based.

The company employs 330,000 staff worldwide, and 58,000 in the UK. A spokesman confirmed that finance, IT and HR staff in regional offices are likely to be most affected by today's announcement, with around 280 staff set to lose their jobs in Leamington Spa in Warwickshire and 90 in Newport in Wales.

But he said: "There will be some impact in Canary Wharf, but the vast majority will be elsewhere in the UK.

"It's an unfortunate reflection of what's happening right now."