HSBC Plans For Mass Job Cut, Nearly 35,000 Employees To Be Jobless Soon!

The Hongkong and Shanghai Banking Corporation (HSBC's) London-headquarters shocked employees after announcing that it will cut 35,000 jobs worldwide after profits slid by a third last year.

HSBC, which makes most of its profits in Asia warned that the coronavirus has disrupted operations in China and Hong Kong. Before taking the big step, the bank will arrange itself into four geographic regions- Asia, the United Kingdom, the United States and the rest of the world.

According to The Guardian reports, the interim chief executive, Noel Quinn, plans to cut $4.5bn (£3.5bn) worth of costs that would involve slashing about 15 percent of the group’s global workforce. 

“We would expect our headcount to decrease from the current level of 235,000 to be closer to 200,000 in 2022. This represents one of the deepest restructuring and simplification programmes in our history," Quinn said.

HSBC, which currently operates in 64 countries stated that there would be job cuts in the UK, mainly affecting its head office operations and global banks and markets business, which are largely London-based. 

"Parts of our business are not delivering acceptable returns. We are therefore outlining a revised plan to increase returns for investors. We intend to reduce capital and costs in our underperforming businesses to enable continued investment in businesses with stronger returns and growth prospects. We also plan to simplify our complex organisational structure, including a reduction in Group and central costs," Quinn said.

In his statement, Quinn also gave clarity on whether he would get the CEO job full time, asserting that a permanent chief would be appointed within six to 12 months.