|18 February, 2020

HSBC to slash 35,000 jobs in major restructuring move

The 35,000 jobs represent about 15 percent of its workforce

HSBC's building in Canary Wharf is seen behind a City of London sign outside Billingsgate Market in London, Britain, August 8, 2018.

HSBC's building in Canary Wharf is seen behind a City of London sign outside Billingsgate Market in London, Britain, August 8, 2018.

REUTERS/Hannah McKay

Banking giant HSBC will slash around 35,000 jobs as part of its cost cutting targets for a major restructuring.

The bank has not given the exact details of where the job cuts will be implemented. However, interim CEO, Noel Quinn told Reuters that reducing the workforce from the current 235,000 to “nearer 200,000” would be consistent with the £3 billion or so he wants to save by 2022.

The 35,000 jobs represent about 15 percent of its workforce.

According to media reports, four areas are likely to be affected: the UK investment bank, the group's central operations, the US retail banking outfit and those areas where jobs are being replaced by technology.

HSBC, which makes the bulk of its revenue in Asia, reported annual profit before tax of $13.35 billion for 2019 versus $19.89 billion in 2018.

It said the fall in profits was due to $7.3 billion in write-offs related to its investment and commercial banking operations in Europe.

According to Quinn, the coronavirus epidemic has affected staff and customers. In the long run, it could reduce revenues and cause bad loans to increase due to supply chain disruptions.

HSBC’s Asian operations are headquartered in Hong Kong.

(Writing by Seban Scaria, editing by Anoop Menon)

(seban.scaria@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Business