- - Sunday, July 31, 2011

BANKING

HSBC plans thousands of job cuts

NEW YORK — HSBC plans to announce thousands of job cuts Monday as part of an ongoing cost-cutting program announced in May, according to media reports.

The British banking company is expected to reveal it is cutting 10,000 jobs, or 3 percent of its workforce, when it reports earnings Monday, according to reports by British news broadcaster Sky News and in the New York Times.

HSBC spokesman Neil Brazil in New York declined to comment on the report.

HSBC Holdings PLC told investors in May that its new management team was implementing a strategy that would shift focus away from retail banking to commercial and corporate banking, and would target investment in high-growth economies.

Chief Executive Officer Stuart Gulliver, who began his job at the start of the year, said the bank will be directing investment to fast-growing markets, such as Mexico and Turkey, and scaling back elsewhere by, for instance, withdrawing from retail banking in Russia. These and other moves are intended to trim costs by up to $3.5 billion within three years. 

TRANSPORTATION

‘Lifeline’ of public transit faces deep cuts in state

BRISTOL, R.I. — The impact of service cuts being considered by Rhode Island’s public transit agency is more than just an inconvenience for those who rely on the system to get to and from work and elsewhere.

In a state with the third-highest unemployment in the nation behind Nevada and California, any cutbacks could hamstring an already struggling economy.

Charles Odimgbe, the chief executive officer of the Rhode Island Public Transit Authority, says public transportation effectively subsidizes most small businesses and calls it an “economic catalyst” for any community.

RIPTA is considering eliminating some routes, operating others less frequently and doing away with all holiday service.

One worker in the hospitality industry who takes the bus from Bristol to Newport and Providence says cutting late-night service will be devastating to businesses.

LAWSUIT

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