HSBC as part of a cost-cutting drive is planning to cut up to 10,000 jobs, which is about four percent of its 238,000 global workforce. The British multinational bank will primarily focus on axing high-paid roles most likely across Europe, considering its returns from the region are lower when compared to a few parts in Asia.
These job cuts are on top of the 4,700 redundancies that the bank had announced in August and comes following Noel Quinn, taking over as the HSBC’s interim chief executive. Citing unidentified sources, a recent Financial Times report said that Quinn had started working on this the new cost-cutting plan days after he took charge of his new role. Ewen Stevenson, CFO at HSBC is also said to be working alongside Quinn in the execution of this new plan.
The duo are said to be exploring the execution of this option across HSBC’s four major divisions, that serve multinationals, smaller businesses, retail customers and wealthy individuals. HSBC’s French retail operations, which is currently up for sale, would help in these redundancies as thousands of its staff there, could either be absorbed by the new owner or be made redundant.
The news is, however, not surprising as it follows several European banks making similar announcements recently. While Deutsche Bank announced in August that it would cut 18,000 jobs as part of an overhaul programme, Barclays, Société Générale and Citigroup too have made similar announcements this year as low interest rates, Brexit uncertainty, tariff wars and a slowing economy weigh on their growth prospects.
While HSBC has formally declined to comment, the bank is expected to make a public announcement on the same while reporting its third quarter results later this month.
On the positive however, the current plan would not prevent HSBC from continuing to hire new staff in high growth regions in Asia, especially those that will help the bank generate revenues.