HSBC Stock Closes Down on Decision to Slash 50,000 Jobs

NEW YORK (TheStreet) -- Shares of HSBC (HSBC) closed Tuesday's trading session down 0.72% to $47.03 after the London-based lender CEO Stuart Gulliver said today that he will cut 50,000 jobs as part of a global overhaul, The Wall Street Journal reports.

This action comes as Gulliver, who has been in charge for four years, plans to turn around the bank's performance, which has struggled in recent years, The Financial Times reports.

"Investors will need to be patient as they deliver on cost cutting and reallocating capital to better performing assets and some may run out of patience," James Laing, deputy head of U.K. and European Equities at Aberdeen Asset Management, and a top 10 investor in the bank, told The Financial Times.

Cutting jobs and selling operations in Turkey and Brazil will help restore profit growth, as it will help cut annual costs by $4.5 billion to $5 billion, Bloomberg added.

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