HSBC to cut 260 jobs in Switzerland - media
GENEVA (Reuters) - The Swiss arm of global bank HSBC is likely to cut around 260 jobs over the next two years, mainly in back office functions in Geneva, as it switches to a new computer system, Swiss newspaper reports said on Wednesday.
The bank confirmed it was making a strategic investment in a new "core banking platform" and said the main effect would be on back office jobs.
It did not confirm the figure, which would account for almost one in five of its 1,350 employees in Switzerland, and said any cuts would be subject to a consultation process.
"HSBC Private Bank (Suisse) SA is currently consulting with employees about an expected headcount reduction arising from further streamlining of the Bank and the implementation of a new core banking platform," it said in a statement.
The Tribune de Genève newspaper, citing "a reliable source", said the new software would be supplied by Switzerland's Avaloq Group AG and HSBC had no plan to scale down overall operations.
The bank said it remained fully committed to Switzerland as a priority market for HSBC Group and a key centre of private banking, and said the investment in the new software and the recent refurbishment of its building in Geneva totalled more than $200 million.
Earlier this year HSBC admitted failings in compliance and controls in its Swiss private bank after media reports said it helped wealthy customers conceal millions of dollars of assets in the period up to 2007. It adds to a long list of banking scandals that have emerged since the financial crisis, including several at HSBC.
But the bank said there was no link between those failings and its planned job cuts.
"The expected headcount reduction is not in any way related to the recent media coverage," its statement said.
Top European and U.S. banks axed 59,000 jobs last year as they restructured and cut costs, and headcount is expected to shrink further in Europe as bosses strive to revive profits hit by tougher regulation.
(Reporting by Tom Miles; Editing by Elaine Hardcastle)
