HSBC to slash 2000 UK jobs - The Sun

HSBC chief exec Stuart Gulliver's move will wipe out layers of middle management in the giant's corporate banking and high street arms.

It is the biggest round of cuts by the bank in Britain since the credit crisis began.

HSBC, which employs 52,000 people in the UK, saw profits soar 15 per cent last year to £13.8billion. It will pin part of the blame for the cuts on the need to "streamline" ahead of more red tape from the Government. It comes as City experts forecast a staggering 100,000 banking jobs could disappear in the UK in the next two years as smarter technology is introduced.

Analyst Ralph Silva, of SRN RESEARCH, said yesterday: "What HSBC is planning isn't the start of it — we're in the middle of this now.

"This isn't about a recession, this is the effect of all the new technology that's coming in. You don't need people to push paper any more." Nine months ago, Mr Gulliver said he wanted to axe 30,000 jobs worldwide by the end of 2013.

At the time the chief, who trousered £7.9million last year, said: "We have a cost problem."

HSBC has already cut jobs in Hong Kong, the US, Brazil, Canada and Mexico. In December it axed 330 UK roles.

BARCLAYS has cut 6,000 jobs since the credit crunch, LLOYDS 30,000 and ROYAL BANK OF SCOTLAND an incredible 34,000.

Some of the biggest cuts announced by HSBC today are expected to come in London and Sheffield.

A source told Sun City: "No one is speaking about this externally but an official statement is on the way."

HSBC last night confirmed on the staff intranet that cuts were on the way. Last month Mr Gulliver slammed the Coalition's levy on the banks and its wave of extra regulations such as the obligation to hoard more cash in case of emergencies.

He said the combined effect meant the stock market "permanently" under-valued HSBC's shares by as much as £18billion. HSBC has previously warned it could be forced to relocate its HQ to the Far East.

HEATHROW Airport's owner has blasted the Government over chaos at immigration desks.

BAA finance chief Jose Leo said peak-time queues now reach TWO HOURS after cutbacks at the Border Agency.

He told Sun City: "We're concerned. The events of recent months aren't positive.

"Obviously security is paramount but it should go together with a good passenger experience."

BAA's first quarter profits, excluding debt payments, leapt 15 per cent to £231million. But its debts grew by £400million to £10.8billion — in part because it gave £60million in divis to foreign shareholders.

CASH-strapped tour operator THOMAS COOK blew £120,000 in a Christmas Day cock-up, it emerged yesterday.

The group's HOTELS4U subsidiary ran a £50 room promotion on December 25 — expecting under 600 bookings.

But it was swamped by SIX TIMES as many, leading to the big loss.

It was forced to suspend the promo, drawing the wrath of the Advertising Standards Authority yesterday.

Thomas Cook last night said the suspension only came after it noticed "duplicate" bookings which were banned.

It has still not signed a £1.2billion refinancing with its banks.

BRITAIN'S biggest regional airline FLYBE will today announce it is scrapping hated debit card fees plus most add-on charges.

UK chief Andrew Strong said customers were fed-up with seeing a ticket price — only to be stung for more once extras are included. He declared: "We want to differentiate ourselves from the low-cost carriers. Now is the right time to be different."

The airline will today unveil three new pricing bands — Essentials, New Economy and Plus. The New Economy tariff will start at under £50 and include a baggage allowance, pre-flight seat selection and the flexibility to change the date of departure. Flybe planes are also set to test wi-fi — which will allow passengers to download TV and films or shop online.

NEWCASTLE United owner Mike Ashley is in the money as his SPORTS DIRECT empire defies the doom.

The tycoon was yesterday awarded another two million shares under a bonus scheme. This means he'll now pocket eight million — currently worth £23.4million — in 2018 if profit targets are met in the next three years.

Sports Direct's sales are up 13 per cent in the past nine weeks. Shares rose 6p to 291p — close to the 300p float price of 2007.

FORD faces its first walkout since the 1970s after union leaders vowed to ballot workers on industrial action yesterday. Unite is battling plans to ditch the final salary pension scheme and slash pay for new workers.

It vowed to block a "two-tier workforce". The ballot will cover staff in the Midlands, South Coast and Dagenham, East London, where a 1968 pay fight by women workers was turned into the 2010 hit film Made in Dagenham.