HSBC recently announced that it would cut 30,000 jobs or about 10 per cent of its workforce worldwide by 2013. It would also reduce its local operation by about 10 per cent, shedding 3,000 jobs.
The news angered staff, especially those at junior levels, and prompted many labour unions to stage protests at the bank's headquarters in Central to condemn the proposed lay-offs.
It has been said that British dogs can bite twice. That's because, in the United States and Canada, dogs that bite people once will be immediately put down. Maybe the British are a more animal-loving people because dogs that bite in Britain are often given a second chance.
HSBC is even luckier as it's been given more than two chances for letting Hong Kong down. The British banking giant, which has been positioning itself as the world's local bank, has been recognised as a part of Hong Kong, growing alongside the city over the past century. Hong Kong people have always supported the bank despite the bad moves it has made over the years.
Hong Kong people have always viewed it as a local bank even though it moved its headquarters to London in 1992 because of pre-handover political uncertainty. The change of domicile certainly dealt a severe blow to Hongkongers at the time.
Despite all that, Hong Kong people have always vigorously defended the interests of HSBC; during the global credit crisis, its business suffered a huge setback and its shares tumbled. The bank needed additional capital to meet the higher target in capital ratio requirements. Throughout its capital-raising process, Hong Kong people gave the banking giant their full support. At that time, its share price nosedived to below HK$40. Its shares are currently trading at above HK$60.
