The UK’s biggest bank, HSBC, plans to impose a global freeze on pay and hiring in 2016, sources have said. An email was sent to staff on Friday outlining the measures as part of the bank’s cost-cutting drive.

A source confirmed the email’s contents to the media after it was first reported by Reuters. “As flagged in our investor update we have targeted significant cost reductions by the end of 2017,” they said.

In June, London-based HSBC outlined to investors that it would slash $5bn (£3.5bn) in costs by 2017. The bank said at the time that it planned to cut 8,000 of its 48,000 workforce in the UK, and axe 25,000 jobs globally. The UK workforce has since gone down to 45,000.

HSBC also said in June that it would shrink its investment bank by a third in response to sluggish economic growth and tighter global regulation of banking risk. The banking giant is also considering moving its global headquarters away from London.

The bank’s chief executive, Stuart Gulliver said at the World Economic Forum (WEF) annual meeting in Davos last month that the bank will provide an “update” in February on its relocation plans – but the update may not include a final decision.

Meanwhile, HSBC said its UK internet and mobile banking services had “fully recovered” late on Friday after suffering a cyber attack.

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