Scots escape worst as HSBC cuts 1,200 staff

Published on Wednesday 25 March 2009 20:33

SCOTLAND yesterday escaped the worst of the latest round of jobs cuts as banking giant HSBC announced plans to axe 1,200 posts in the UK.

But trade unions claimed as many as 2,900 jobs were under threat at the bank, as staff who leave are not replaced and contracts are not renewed.

Derek Simpson, joint leader of trade union Unite, also claimed 500 jobs would be moved offshore, although the bank refused to confirm exact details.

He said: "To slash 2,900 jobs demonstrates the insincerity of the claim by HSBC to be the world's local bank. This decision will ravage a number of local communities as sites are closed and other work is sent abroad."

HSBC, which has about 58,000 staff in the UK, said job losses would hit backroom areas such as IT and human resources rather than front-line employees in branches. An HSBC spokesman said only 20 or 30 of the 3,500 posts in Scotland would be affected by the changes.

Managing director Paul Thurston said: "There are difficult decisions that have to be made as we adapt to a new environment and ensure we are well positioned for the future."

HSBC said 280 jobs would be axed at its Leamington Spa processing centre, 90 in Newport, in Wales, and 150 in London.

A spokesman said a "very small" number of jobs were being moved offshore, adding that he did not recognise the union figure.

&#149 Royal Bank of Scotland yesterday announced plans to axe almost 100 jobs from its business dealing with personal loans.

RBS said it had begun consultation with staff in Rotherham and with Unite, the union, following the decision to withdraw its MINT, Lombard Direct and Direct Line brands from the unsecured personal loans market.