HSBC to cut 2 per cent of its workforce as lender looks to reduce costs
- Lender is looking to trim its wage costs by 4 per cent in 2019
- HSBC expects severance costs of US$650 million to US$700 million over the course of the year
HSBC said it plans to cut less than 2 per cent of its workforce as the lender looks to reduce the rate of its cost growth in a more challenging market environment.
As of June 30, the bank, which is based in London, but generates more than half of its revenue in Asia, had 237,685 full-time employees worldwide and had an additional 9,647 contractors.
As part of its second quarter results, the bank said that it had set aside severance costs of US$248 million in the first half of the year related to its efforts to reduce costs, with about US$199 million recognised in the second quarter. The company said it plans for severance costs of US$650 million to US$700 million over the course of the year, equivalent to less than 2 per cent of its workforce.
The bank intends to shave about 4 per cent off its wage costs over the course of 2019, Ewen Stevenson, the bank’s chief financial officer, said on Monday. The job cuts would come from lay-offs, as well as “natural attrition” where positions are not filled after a person leaves the company.
“Most areas of the bank have been involved in cutting headcount,” Stevenson said on a call with analysts.