HSBC to resume massive restructuring plan, cut 35,000 jobs
- HSBC plans to cut as many as 35,000 jobs as part of a massive overhaul first unveiled in February
- The London-based lender paused jobs cuts in March because of the ‘extraordinary impact’ of the coronavirus pandemic on the global economy
HSBC plans to resume thousands of job cuts planned as part of chief executive Noel Quinn’s strategy to further pivot to Asia, but paused in March as the coronavirus pandemic pushed the global economy towards a recession.
Quinn said in an internal memorandum on Wednesday
that the measures, originally announced in February as part of an effort to reduce annual costs by US$4.5 billion, “are even more necessary today”, adding that “virtually all economic forecasts point to challenging times ahead”.
Quinn said Hong Kong’s biggest lender still intends to proceed with efforts to cut its headcount from about 235,000 people currently to close to 200,000 in the “medium term”. The bank had previously said the cost cuts would be fully implemented by 2022.
“I know that this will not be welcome news and that it will create understandable concern and uncertainty, but I want to be open with you about the reality of the current situation,” he said in a memo seen by the South China Morning Post.
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HSBC doubles down on Asia in massive staffing overhaul
A HSBC spokeswoman confirmed the contents of the memo on Wednesday.