ClickAJob News

HSBC is to cut 1,200 jobs in the UK, but the bank maintains no branch positions will be lost.

Redundancies will be focused on bank room operations and call centres – following 500 job losses from the bank's London headquarters announced in December.

A call centre in Newport will close, while cut backs will occur at further sites, staff are being informed today.

HSBC has not turned to the UK government to aid it through the financial crisis and has maintained a profit.

However, it did announce a £12.5 billion rights issue to raise extra funds from shareholders to build up its capital reserve.

HSBC UK managing director Paul Thurston said: "The operating environment for banks in the UK is extremely challenging and will remain so for some time.

"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."

Unions have hit out at the job cuts.

Derek Simpson, Unite Joint General Secretary, claimed a total of 2,900 jobs were to be lost.

"This decision will ravage a number of local communities as sites are closed and other work is sent abroad," he said.

"Customers of HSBC will be furious to learn that the company only believes you deserve to have a local banking service if you are a wealthy premier customer, this makes a mockery of their claim to be 'the world's local bank'."

He claimed customers on basic and standard current accounts would be serviced from Indian call centre – leaving those paying for accounts receiving UK service.

"HSBC is a profitable institution and the announcement today is simply using the financial downturn as a pretext to make redundancies," Mr Simpson said.

"Workers at the bank will be alarmed at the pace at which this announcement is being rushed through, the bank is cutting corners in its failure to consult appropriately with the union."

An HSBC spokesperson explained staff in Indian call centres were trained to the sale levels as UK counterparts and customers should not experience any difference.

"All staff are trained to extraordinarily high standards and customers should not think we are contracting out call centres," he said. "These are full-time staff."