According to CEO Stuart Gulliver, HSBC plans to cut employees down to 240,000 by 2016. That's down from its prior plan of reducing jobs to about 254,000. Gulliver said the cuts will take place across the globe and will not focus on any specific business unit.
The company also plans to reduce costs to about 55% of revenue in 2014 to 2016, higher than its prior goal of 48% to 52% for the three years before. Over the next three years, HSBC plans to focus on commercial banking in Asia and Latin America, and retail banking and wealth management primarily in the U.K. and Hong Kong. The bank also said it may buy back shares by 2016.
Europe's largest bank has cut more than $4 billion in annual expenses, exited 52 businesses and cut 46,000 jobs since 2011.HSBC said last week that its first-quarter profit rose nearly 50% from a year ago to $8.43 billion, beating analysts' expectations.
Deere (DE - Get Report) reported higher-than-expected results for the second quarter and forecast a record profit for the full year. Deere reported net income of $1.08 billion, or $2.76 per share for the quarter ended April 30, up from $1.056 billion, or $2.61 per share, in the same period a year ago. The results topped analysts' estimates of $2.72 a share. Sales rose 9% to $10.91 billion, also beating estimates of $9.85 billion. The farm and construction equipment maker also maintained its full-year profit prediction of $3.3 billion. However, Deere lowered its forecast for sales to the construction industry, on concerns about weakness due to the outlook for U.S. economic growth. Deere said it expects equipment revenue to rise by about 5% in the year to October, below its previous forecast of 6%. CEOr Samuel Allen said in a statement, "Deere's near-term forecast is being tempered by lingering economic concerns in many parts of the world, which are restraining business confidence and growth."