HSBC to cut 10,000 jobs worldwide
HSBC currently employs around 238,000 and planning to reduce of 10,000 jobs, which is less then 5% of employee turnover to meet the global challenge of facing cost pressure and planning to reduce headcount and the bank is forced to shed jobs due to lower interest rates and global tariff wars.
"We've known for years that we need to do something about our cost base, the largest component of which is people - now we are finally grasping the nettle.HSBC similarly warned about a challenging global environment linked to US interest rate cuts, Britain’s EU divorce, the US-China trade war, and unrest in Hong Kong
The bank has a new interim chief executive, Noel Quinn, who replaced John Flint in August. Upon Quinn's appointment, the bank said that it needed to make a change at the top to address a "challenging global envirionment". It now looks like Quinn is attempting to make his mark. The release of Finextra says.
There are few details as yet as to where the cuts will be made and HSBC has made no official comment. But reported comments suggest that the focus will be on high-paid jobs and management roles rather than the numerous back-office and IT roles.
There are also suggestions that there will be more job losses in Europe rather than Asia where growth is still in double digits despite the ongoing threat of a US-China trade war and civil unrest in Hong Kong, its main Asian market.
Despite the notion that the job cuts are overdue, HSBC has announced similar plans in the past. In 2011, the new chief executive of the time, John Gulliver, spoke of cutting 30,000 jobs over three years in order to save $3.5 billion in costs.
And earlier this year, HSBC announced plans to cut 4,700 jobs. It is believed that the latest round of cuts will come on top of this figure. An official announcement is expected to be made after the bank announces its third quarter results later this month.
HSBC is not alone in facing cost pressure and planning to reduce headcount. Barclays reduces the workforce by 3,000 jobs , Deutsche Bank announced by 18,000 hair cuts, Citigroup cuts with hundreds of employee and Societe Generale by 1,600 work force have all made similar moves this year.