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) 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."

Allen added that cool, wet weather in North America "delayed crop planting, slowed construction activity and hurt sales of turf-care equipment."


Google ( GOOG) is reportedly readying a subscription music-streaming service that would rival Spotify. Reports say the company could debut the service as early as Wednesday at its annual developers conference.

The Verge is citing sources who say Google has secured licensing deals with Sony ( SNE) Music Entertainment and Universal Music Group for YouTube and Google Play.

Google currently has a cloud music service called Google Music, where users can upload as many as 20,000 purchased songs and listen to them on Android devices or over the Internet. As the Android operating system is currently the most-used smartphone software, the service could pose a challenge to Spotify, which boasts more than 24 million active users across the world.

If Google debuts the music streaming service, it would beat Apple ( AAPL) to the punch. According to speculation, Apple has been working on its own music streaming platform, but it has not yet been revealed.


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-- Written by Brittany Umar.
Brittany joined TheStreet.com TV in November 2006 after completing a degree in Journalism and Media Studies at Rutgers College. Previously, Brittany interned at the local ABC affiliate in New York City WABC-TV 7 where she helped research and produce On Your Side, a popular consumer advocacy segment.