HSBC Wants to cut 35,000 Jobs

HSCB Based in London, but active throughout the world and particularly in Asia, the group, already engaged in a vast cost reduction plan, now plans to reduce its total workforce by almost 15%. “We expect our current workforce of 235,000 to decrease to closer to 200,000 employees in 2022,” Acting CEO Noel Quinn said in a conference call. Quinn did not specify which regions would be affected, but stressed that the cuts would be significant in the UK.

At the same time, HSBC outlined the outlines of a major reorganization on Tuesday, which should result in a refocusing in Asia and the Middle East, deemed more profitable, to the detriment of investment banking activities in Europe and United States. These announcements come with the publication on Tuesday of a 53% drop in net profit in 2019 to 5.97 billion. Asia remains the crucial region for HSBC, which generates half of its turnover there. Adjusted profit before taxes last year in Asia swelled 6% to $ 18.6 billion.

If its performance in Asia remains driven by the Chinese locomotive, the bank is under strong pressure in the United States as in Europe, suffering in particular from the Sino-American trade war and the British withdrawal from the European Union. As part of its reorganization, the group intends to reduce its network of branches in the United States by approximately 30% with the objective of lowering its operational expenses there from 10% to 15%. The bank also plans to transfer its structured finance products business from the United Kingdom to Asia. Finally, it wants to reduce the volume of its risky assets by 35% in Europe and 45% in the United States.

 

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HSBC Wants to cut 35,000 Jobs - /10

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HSCB Based in London, but active throughout the world and particularly in Asia, the group, already engaged in a vast cost reduction plan, now plans to reduce its total workforce by almost 15%. "We expect our current workforce of 235,000 to decrease to closer to 200,000 employees in 2022," Acting CEO Noel Quinn said in a conference call. Quinn did not specify which regions would be affected, but stressed that the cuts would be significant in the UK.

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