HSBC plans to axe 25,000 jobs in the UK

London

Scandal-hit bank HSBC announced Tuesday up to 25,000 job cuts as part of a global restructuring that entails its withdrawal from Brazil and Turkey, while it also mulls abandoning London as its HQ.

In a statement to the Hong Kong stock exchange it also said it intends to save $5 billion in annual costs within two years.

The announcement comes ahead of an investor update later Tuesday in which chief executive Stuart Gulliver is expected to announce thousands of job cuts, according to reports.

"HSBC is now undertaking a significant reshaping of its business portfolio," the statement said.

It added that the bank was "redeploying resources to capture expected future growth opportunities".

The bank would aim to save $4.5-$5 billion in annual costs by 2017, including selling its businesses in Turkey and Brazil, the statement said, adding it would step up investments in Asia.

It also said said it expected to complete a review of where to locate its headquarters by the end of this year.

 -Major shake-up-

 The news comes ahead of a presentation that chief executive Stuart Gulliver will give to investors and analysts in his second major strategy plan since becoming the head of the bank in 2011.

 "We recognise that the world has changed and we need to change with it. That is why we are outlining the following... strategic actions that will further transform our organisation," he said in a statement.

 The new plan will see the lender try to save annual costs of up to $5bn and make big cuts to its investment bank.

 HSBC also set a new target for return on equity to more than 10% by 2017, down from the previous target of 12% to 15% by next year.