HSBC Private Bank announces plans to cut 260 jobs in Switzerland

HSBC recently hinted that it could be moving its headquarters from the UK to Asia Keystone

The Geneva-based private banking arm of HSBC bank has confirmed that it plans to axe 260 jobs over a period of two years. The job cuts have nothing to do with the Swiss Leaks revelations, according to a spokesperson.

The staff were informed of the decision on Tuesday and a consultation process until mid-May has been initiated. Most of the planned cuts are expected to take place next year. The bank currently employs 1,200 staff in Geneva and a total of 1,350 in Switzerland.

“These measures, envisaged some time ago, are aimed at increasing efficiency,” said HSBC spokesman Michael Spiess. “They are not the result of recent information in the media.”

According to an internal memo accessed by Geneva financial daily L’Agefi, the hardest hit will be back office employees. Of the 260 job cuts envisaged, around 210 of them are expected to be back office posts.

Employees were warned in 2013 that the adoption of a new banking platform could have an impact on their jobs. HSBC has adopted the Avaloq banking platform that is designed to improve efficiency and allow outsourcing of various tasks.

Spiess also stressed that the “HSBC remains fully committed to Switzerland, both as a key centre of wealth management and a priority market for the group”.

As proof of its commitment the spokesman pointed to the recent investment of $200 million (CHF191 million) in its offices and banking platform.

HSBC’s Swiss branch has undertaken a strategic repositioning in recent years decreasing the number of markets it covers and concentrating on clients with at least five million in assets. As a result, overall assets under management were also reduced by around 43% from nearly $120 billion in 2007 to $68 billion last year.