HSBC said that it will "streamline" its global IT operations as part of plan to cut operating costs by up to $3.5 billion.
The banking giant says the radical cost reduction drive is designed to "create capacity to re-invest in growth markets and to provide a buffer against regulatory and inflationary headwind".
CEO Stuart Gulliver said the plan will include "re-engineering business processes and streamlining IT". He added, however, that the bank’s sustainable cost savings would allow future investments in technology.
Earlier this week, HSBC reported a 14% drop in profit for the first quarter of the year, down to $4.9 billion. This was in part due to a 7% increase in operating costs to $10.3 billion for the quarter.