HSBC announced today that it would cut 30,000 jobs as part of a comprehensive cost cutting program to improve profitability.  Europe's largest bank said the cuts, representing about 10% of its work force, are part of a plan to slash expenses by $2.5bn-$3.5bn by 2013.

The cuts include the 5,000 positions HSBC has already started eliminating this year through the closing and selling of some businesses.  The layoffs were announced as HSBC reported profit through the first 6 months of the year rose 36% to $9.2bn, up from $6.7bn in the same period last year.  Profits were boosted partially because the bank set aside 30% less - i.e., $5.3bn - than last year for bad loans and credit risks.

The cuts follow the lead of other banks, including Goldman Sachs and Morgan Stanley, that have announced their own layoffs.  Credit Suisse recently announced it would eliminate 2,000 positions, and UBS is expected to axe around 5,000.  Cuts are expected mostly in mature markets, with banks still hiring in Asia and Brazil.   [NYT Dealbook, 8/1/11]