HSBC to cut jobs and raise $18 billion

London -- British bank HSBC Holdings said it would lay off 6,000 workers Monday as it struggles to overcome a sharp decline in net income.

The bank reported its income fell from $19.1 billion in 2007 to $5.7 billion in 2008, The New York Times reported Monday.

The bank said it would cut its 2008 dividend by 29 percent and try to raise $18 billion in fresh capital with a rights issue of shares.

The bank's existing shares have slid sharply on the stock market, losing 28 percent of their value this year. In January, Knight Vinke Asset Management said investors would be receptive to a capital-raising maneuver.

To date, HSBC has avoided use of any government bailout funds. But, it has struggled.

Its $15.5 billion purchase of Household International in 2003 made HSBC the largest subprime lender in the world. The bank, with a strong presence in emerging markets, has had to shore up Household International with billions of dollars, the Times said.

Copyright 2009 by United Press International.