BANKING giant HSBC is to create 200 jobs in Southampton – despite major job cuts elsewhere in the country.

The firm is planning to axe 1,200 UK jobs following a review of the business, although unions put the number closer to 3,000.

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However, the losses – mainly in the Midlands – will push work to other centres including Southampton, where HSBC already employs 800 in its Nelson’s Gate offices next to the station in the city centre.

The 200 new jobs will be created in the bank’s Investment Service and Wealth Management Centre in Southampton, and will be largely work relocating from Leamington Spa in Warwickshire.

News of new jobs in the region’s hardhit financial services sector will be welcomed, albeit that they come at the cost of other areas of the country.

An HSBC spokesman said: “One of the consequences of our office in Leamington Spa closing in the Midlands is that work will be moved over the next 12 months to our Southampton site. The likely impact will be that around 200 new roles will be created.”

Managing director Paul Thurston said: “There are difficult decisions that have to be made as we adapt to a new environment and ensure we are well positioned for the future.”

He also warned of the turbulent road ahead for the banking sector following last year’s near-meltdown.

“The operating environment for banks in the UK is extremely challenging and will remain so for some time,” he said.

As one of the world’s strongest banks, HSBC has not needed to call on support from the British taxpayer so far, unlike struggling rivals Lloyds Banking Group and Royal Bank of Scotland.

But earlier this month, the bank called on investors for a UK record £12.5 billion in cash to shore up its balance sheet after heavy losses in the US.

Derek Simpson, the joint leader of trade union Unite, also claimed that 500 jobs would be moved offshore, although the bank refused to confirm exact details.

He said: “To slash 2,900 jobs demonstrates the insincerity of the claim by HSBC to be the world’s local bank.

“This decision will ravage a number of local communities as sites are closed and other work is sent abroad.”

HSBC, which has around 58,000 staff in the UK, said job losses would hit backroom areas such as IT and human resources rather than front-line employees in branches.