February 18, 2020

Restructuring: HSBC to cut 35,000 jobs in next 3 years


Banking giant, Hongkong and Shanghai Banking Corporation (HSBC), says it plans to cut some 35,000 jobs worldwide in the next three years as it restructures and increases its focus on Asia.

HSBC’s total workforce will fall from 235,000 to about 200,000 as the bank reduces costs and builds “a simpler, more efficient and empowered organization,” interim chief executive Noel Quinn said.

The bank reported 33 per-cent fall on its annual profit last year, to 13.3 billion dollars, as revenue rose by 4 per-cent and costs were up to 22 per-cent.

“The group’s 2019 performance was resilient, however, parts of our business are not delivering acceptable returns,” says Quinn.

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“We are taking decisive action today in order to address those under-performing parts of the business, to redistribute capital to growth opportunities, to simplify our business – and in so doing reduce the cost base of HSBC,” he said.

Finance chief Ewen Stevenson said the bank plans to “meaningful’’ cuts to its 40,000 British staff.

HSBC says it wants to focus its British-based investment banking business on “supporting the UK mid-market clients and international corporate clients through its London hub,” while also reducing other services and shifting some to Asia.

It plans to reduce its U.S. branch network by about 30 percent and “streamline functions to simplify its U.S. business and lower costs.”

HSBC employs some 10,000 people in the U.S. as well as 40,000 in India, 31,000 in Hong Kong, 28,000 in China, 16,000 in Mexico and 8,000 in France. (dpa/NAN)