HSBC Holdings Plc may eliminate as many as 10,000 jobs as part of a cost-cutting drive, according to a Financial Times report that signalled Europe may bear the brunt of the initiative.
The plan would result in a substantial reduction in HSBC’s workforce of about 238,000, the FT said, citing two people briefed on the matter. The bank, one of several European lenders eliminating roles, is questioning why it has so many people in the region when it has double-digit returns in parts of Asia, one of the people told the newspaper. The job cuts, on top of 4,700 redundancies flagged earlier, could be unveiled when HSBC reports its third-quarter results later this month, according to the FT. The previous round was announced in August when Chief Executive Officer John Flint abruptly departed after 18 months leading the bank. Interim CEO Noel Quinn started working on the new plan days after he was appointed, and has been told he is a leading internal candidate for the permanent role, the FT reported.
Born as the Hong Kong and Shanghai Banking Corp. in 1865, HSBC has been shifting resources to Asia, especially China, as part of a strategy initiated by former CEO Stuart Gulliver and strengthened under Flint. HSBC has remained committed to its expansion in the region, even with the US-China trade war and Hong Kong’s protests swirling. The bank said last month it’s sticking with plans to hire more than 600 for its wealth business in Asia by the end of 2022, with more than half of those jobs to be added through this year.
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