The struggling bank, which has just had a £12.5billion rights issue cleared by its shareholders, has, according to reports, begun warning its staff members of job cuts.

HSBC has so far managed to steer clear of taxpayer money, but today’s reports suggest that it needs to cut further costs in addition to raising the £12.5billion.

Shares in HSBC have continued their recent downward trend, falling further on today’s job loss speculation.

However, despite reports of 1,200 job cuts, Unite, a union representing HSBC staff, has commented on 2,900 job losses. Derek Simpson, Unite joint general secretary 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.”

According to Unite, all basic and standard current accounts will soon be serviced from India after site closures in the UK.

Mr Simpson added: “HSBC is a profitable institution and the announcement today is simply using the financial downturn as a pretext to make redundancies.

“Workers at the bank will be alarmed at the pace at which this announcement is being rushed through, the bank is cutting corners in its failure to consult appropriately with the union.”

© Fair Investment Company Ltd