GENEVA, April 29 (Reuters) - The Swiss arm of global bankHSBC is likely to cut around 260 jobs over the next twoyears, mainly in back office functions in Geneva, as it switchesto a new computer system, Swiss newspaper reports said onWednesday.
The bank confirmed it was making a strategic investment in anew "core banking platform" and said the main effect would be onback office jobs.
It did not confirm the figure, which would account foralmost one in five of its 1,350 employees in Switzerland, andsaid any cuts would be subject to a consultation process.
"HSBC Private Bank (Suisse) SA is currently consulting withemployees about an expected headcount reduction arising fromfurther streamlining of the Bank and the implementation of a newcore banking platform," it said in a statement.
The Tribune de Genève newspaper, citing "a reliable source",said the new software would be supplied by Switzerland's AvaloqGroup AG and HSBC had no plan to scale down overall operations.
The bank said it remained fully committed to Switzerland asa priority market for HSBC Group and a key centre of privatebanking, and said the investment in the new software and therecent refurbishment of its building in Geneva totalled morethan $200 million.
Earlier this year HSBC admitted failings in compliance andcontrols in its Swiss private bank after media reports said ithelped wealthy customers conceal millions of dollars of assetsin the period up to 2007. It adds to a long list of bankingscandals that have emerged since the financial crisis, includingseveral at HSBC.
But the bank said there was no link between those failingsand its planned job cuts.
"The expected headcount reduction is not in any way relatedto the recent media coverage," its statement said.
Top European and U.S. banks axed 59,000 jobs last year asthey restructured and cut costs, and headcount is expected toshrink further in Europe as bosses strive to revive profits hitby tougher regulation. (Reporting by Tom Miles; Editing by Elaine Hardcastle)
HSBC Holdings (HSBA)