HSBC is expected to initiate a fresh round of job cuts as a part of an organisational restructuring focused on growth and boosting profitability. The job cuts will target senior managers ( as per a Reuters report), and would mainly hit operations in London and to a lesser extent in Asia. The bank will also review its presence and operations in smaller markets including the Latin American markets.
As per the Reuters report, citing sources, ” The changes are expected to be part of a strategy update interim Chief Executive Noel Quinn will unveil on Feb. 18 with a view to boosting the profitability of Europe’s biggest bank by assets in a tough operating environment.” The job cuts is expected to be across major global markets across business units, from investments to commercial banking.
Earlier in October 2019, there have been reports of HSBC planning to axe over 10,000 jobs. The slowdown in the UK economy considering uncertainty regarding Brexit has been hurting the bank, and the bank had earlier downgraded its forecasts. These changes also led to the departure of John Flint as Group Chief Executive and as a Director of HSBC Holdings, earlier in August 2019, followed by the appointment of Noel Quinn as interim Group Chief Executive. In 2011 as well, HSBC had undertaken massive layoffs involving over 30,000 jobs.
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