HSBC to cut up to 10,000 jobs

Andrew Cummings
October 10, 2019

After the decision to see 4,700 out of their jobs in August, HSBC Bank Plc, one of the largest banking and financial services organisations in the world has chose to kick an extra 10,000 staff members out of their jobs.

Citing two people briefed on the matter, the Financial Times report added that HSBC could announce the move when it reports third-quarter results later this month. The new job reductions are in addition to a previously announced 4700 headcount cut. That, combined with fewer replacements and a group-wide streamlining program, could see the 238,000-strong workforce drop by as many as 10,000, the person said, requesting anonymity to discuss private deliberations.

"There's some very hard modelling going on".

Quinn stepped into the interim CEO role when John Flint stepped down as Group Chief Executive and as a Director by mutual agreement with the Board, according to a previous report.

One of the sources cited by FT questioned the need for so many people in Europe when the bank has double-digit returns in Asia.

HSBC employs a total of 237,685 people at the end of June 2019, Reuters reported. The latest losses, mostly in high-paid roles, are part of a fresh cost-cutting drive by interim boss Noel Quinn as the banking titan struggles to adjust to falling interest rates, Brexit and the long-running trade war, the Financial Times reported. In April, he started a cost review that was expected to lead to job cuts, including hundreds of investment banking positions.

During Flint's short tenure as CEO, the bank grappled with a declining stock price and a failure to hit cost targets.

Chief Financial Officer Ewen Stevenson said in August that the bank's returns from Europe were "unacceptable", while in the U.S., the bank said it would miss the return target it had set for next year.

The cost cutting agenda of the banking sector will affect the livelihood of thousands of people who have been working in the sector for many years.

The bank will also continue to hire staff in high-growth regions Asia, where the bank generates 80 percent of its profits, another person said.

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