The strategic plan comes as part of a wider review across HSBC that aims to convince investors that the bank can make strong returns in tough regulatory and economic conditions that have dragged on its profit.
In it presentation, HSBC said that the reductions will occur solely through staff turnover, with no planned compulsory redundancy programs. It follows plans to cut 700 UK jobs and stands in stark contrast to its target of adding 2,000 new staff in China and Singapore in the next five years.
The bank said that through the implementation of the plan, it aims to improve its France’s cost efficiency ratio to 62-64%, from the 71% seen in 2010, and raise its return on equity to the group level of 12-15%, from the current 8.4%.
In early May, HSBC chief executive outlined plans to slash costs by up to $3.5bn by 2013, unload businesses and retreat from retail banking in markets where the company doesn’t have sufficient scale.
The British bank plans to improve efficiency and accelerate its growth in France by focusing on wealth management for personal customers.
It also intends to open three new regional offices in its private banking division, doubling the current number, while strengthening its sales teams.
The bank will offer dedicated relationship managers and longer branch hours for small-business clients, with the aim of pulling in 8,000 new customers a year.
The plan also aims to grow and strengthen the commercial banking operation and consolidate its global and banking division.
