HSBC to cut jobs and asset base

HSBC Holdings PLC  said Tuesday that it will cut its risk-weighted asset base by $290 billion and sell off its units in Brazil and Turkey as it seeks to cut costs and achieve a return on equity of more than 10% by 2017. Also it would reduce its head count by 50,000 as part of a global overhaul to improve the profitability of its sprawling operations.

HSBC, which had 258,000 full-time employees as of December 2014, said it would cut 22,000 to 25,000 jobs through cost reductions across the group. Including the disposals of most of its Brazil operations and the exit from Turkey, around 50,000 jobs would be lost. 
HSBC made the announcement in a filing to the Hong Kong stock exchange shortly ahead of an investor update on its overhaul, slated for Tuesday afternoon in Hong Kong. "In parallel, HSBC intends to accelerate investments in Asia," with a particular focus on China and Southeast Asia. HSBC Chief Executive Officer Stuart Gulliver was also cited in the statement as saying the lender would set up a U.K. ring-fenced bank and find $4.5 billion to $5 billion in cost savings to deliver flat costs by the end of 2017. As for long-discussed plans to move HSBC's group headquarters from London to Hong Kong.