HSBC is set to axe over a thousand jobs worldwide. The banking giant blames the current financial turmoil for its decision, which will affect 1,100 out of its 335,000 staff members across the world.

Half of the job cuts will take place in the UK, and will mostly affect back room jobs at its global banking and markets operation.

Last month, the bank reported a 28 percent fall in half year profits to $10.2bn (£5.2bn), as it was forced to write-off $14bn from bad debts in the US and asset write-downs. Pre-tax profits also fell 35 percent to $2.1bn during the same period.

A spokesman for HSBC said the firm had been forced to reduce its workforce due to “market conditions and the economic environment.” The spokesman also said the banks “cautious outlook for 2009” has influenced its decision.

The majority of the job-losses will be at the London headquarters of HSBC’s investment banking division.

The credit crisis has put pressure on banks around the world, forcing governments to step in and boost money markets as well as bail out a number of companies.

Earlier in the year, the UK government has to buy mortgage lender Northern Rock, and recently struggling HBOS was taken over by Lloyds TSB. The situation in the UK is echoed across the Atlantic where in the US, lenders Fannie Mae and Freddie Mac have had government rescues, and Lehman Brothers recently filed for bankruptcy.