FT: HSBC may slash up to 10,000 jobs to cut costs

Andrew Cummings
October 7, 2019

The HSBC bank logo is pictured at the bank headquarters in Paris.

HSBC Holdings Plc.is planning cost-cutting measures that could result in 10,000 layoffs, the Financial Times reported Sunday. The bank, one of several European lenders eliminating roles, is questioning why it has so many people in the region when it has double-digit returns in parts of Asia, one of the people told the newspaper.

The plan is the lender's most ambitious to rule its cost, a move that will reduce HSBC's staff to roughly 238,000.

HSBC has declined to comment on the speculations and its marketing headcount.

In a report by the FT from earlier today, it was claimed that interim CEO Noel Quinn was seeking to "make his mark on the bank" apparently by whacking a good number of employees. Since then, Quinn has been saying the bank needed a change at the top to address "a challenging global environment".

The bank, which is Britain's second largest company by market value, last month announced the surprise exit of chief executive John Flint after just 18 months in the job but gave no reason for the decision.

HSBC was struggling with falling stocks and poor sales target performance that was made worse by a sexual harassment lawsuit during Flint's tenure as chief executive officer.

The claimed career cuts arrive right after the financial institution said it would be laying off about four, 000 persons this yr, and issued a gloomier business outlook with an escalation of a trade war between China and the United States, an easing financial coverage cycle, unrest in its key Hong Kong marketplace and Brexit. The bank said last month it's sticking with plans to hire more than 600 for its wealth business in Asia by the end of 2022, with more than half of those jobs to be added through this year.

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