The U.K.'s largest bank, HSBC, is planning to impose a hiring and pay freeze across the bank globally in 2016 in a bid to cut costs, two sources familiar with the matter told Reuters. An email was sent to staff on Friday detailing the latest cost-saving measures: "As flagged in our investor update we have targeted significant cost reductions by the end of 2017," it said in part, according to Financial News.
Back in June, Europe's largest lender revealed to investors that it would cut $5 billion in costs by 2017. To accomplish this, the bank planned to to cut 8,000 of its 48,000 workforce in the U.K., while slashing 25,000 jobs globally. It also announced at the time that it would shrink its investment bank by one-third in response to sluggish economic growth and tighter global regulation of bank balance sheet risk.
HSBC has since been making strides towards fulfilling that goal, now having its workforce in the U.K. down to 45,000, according to the BBC.
Another bid at cutting costs came in October when contractors at its investment banking division in London had their pay cut by 10 percent to reign in costs.
The global pay and hiring freeze comes after its board met last week to consider moving headquarters out of London and into Hong Kong in a bid to be closer to faster-growing Asian markets, amid worries over tighter regulation and higher taxes in Britain, according to Reuters.
Senior officials said that last week that a decision on whether to move headquarters - and where, if the board approves of it - is expected to come early next week (i.e. this week).
