Banking group HSBC yesterday said it planned to cut up to 3,500 jobs as part of a shake-up of its UK operations.

HSBC said it would remove or redeploy the jobs, mainly at its head office or in regional management.

At the same time, the bank said it was proposing to create up to 1,000 jobs at its branches.

HSBC said the changes were intended to cut bureaucracy, streamline costs and refocus the retail bank on changing customer needs.

HSBC said redeployment and natural staff turnover would account for a significant part of the changes, which will take place during the next 24 months.

The bank said it aimed to remove 800 administrative back office roles at a branch level, but there would be no overall reduction in staff dealing with customers.

The changes are designed to improve the productivity of the group's UK banking operations, which represent a quarter of the group's profits but 33 per cent of its costs.

The UK bank also accounts for 25 per cent of the group's staff, but 30 per cent of its salary bill.

Chief executive Michael Geoghegan said the redeployment and removal of some roles would simplify the group's management structure and strip out unsustainable costs.

The only way to secure jobs in the long term was to keep the bank efficient and competitive, he said.

The bank has put aside £2m for career and financial counselling and would seek to redeploy staff in roles across the UK.

"We must make decisions now, however difficult, to manage for the future," said Mr Geoghegan.

"They have my personal commitment that we will manage this process carefully and sensitively."