This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

HSBC to Trim $3B in Costs and Cut 14,000 Jobs: Ahead of the Ticker

NEW YORK ( TheStreet) -- HSBC (HBC) plans to cut up to 14,000 more jobs as part of a plan to trim up to another $3 billion in costs.

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."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
HBC $0.00 0.00%
AAPL $124.43 -1.54%
DE $87.69 -1.04%
GOOG $548.00 -0.73%
SNE $26.78 -1.14%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs