HSBC to begin massive layoffs

EPA-EFE/ANDY RAIN
A pedestrian walks by the entrance of a Hong Kong and Shanghai Banking Corporation (HSBC) bank branch in London, Britain, 21 February 2017 (reissued 18 February 2020). According to the bank's interim CEO Noel Quinn, HSBC is set to slash some 35,000 of its global workforce and shed around 100 billion US dollar in assets by 2022 in a major overhaul prompted by a dramatic drop in profits, which plunged by about one-third in 2019.

- Advertisement -

The UK’s HSBC Holdings announced around 35,000 job cuts as part of a major restructuring project.
The bank said it would shed $100 billion in assets. It also said it is targeting a $4.5 billion of cost cuts by 2022, as its profits for 2019 fell by a third. The bank reported annual profit before tax of $13.35 billion. HSBC said the fall in profits was mainly due to $7.3 billion in write-offs related to its investment and commercial banking operations in Europe.
Noel Quinn, HSBC’s interim CEO, said that, over the next three years, the bank would decrease its number of employees from 235,000 to 200,000, which is about 15% of the workforce. Analysts had expected about 10,000 jobs to be cut.
HSBC added it will reduce its sales and research coverage in European cash equities. In the US, it announced it would close about a third of its branches and will target only international and wealthier clients. The bank currently operates in North America, Europe, the Middle East and Asia. It has more than 40,000 employees in the UK, where its headquarters are.
Quinn also warned that the coronavirus epidemic has significantly impacted its staff and customers: “Longer term, it is also possible that we may see revenue reductions from lower lending and transaction volumes, and further credit losses stemming from disruption to customer supply chains”, he said.

- Advertisement -

Subscribe to our newsletter

Latest

EU rules should not stifle entrepreneurship

In explaining the difference between hope and optimism, the...

EU Commission plans Russian gas phaseout as MEPs propose easing pre-winter storage targets

Ensuring gas supply security ahead of the winter season,...

Don't miss

EU rules should not stifle entrepreneurship

In explaining the difference between hope and optimism, the...

EU Commission plans Russian gas phaseout as MEPs propose easing pre-winter storage targets

Ensuring gas supply security ahead of the winter season,...

What chance for peace in Sudan?

The conflict in Sudan has raged for two years,...

In search of jobs and treasure: Trump’s first overseas jaunt takes a distinctly commercial angle

U.S. President Donald Trump completed a four-day tour of the Middle East on May 13-16, visiting Saudi Arabia, Qatar, and the United Arab Emirates....

EU rules should not stifle entrepreneurship

In explaining the difference between hope and optimism, the author and Czech President Vaclav Havel stated that one is the conviction that something will...

From shovels to shadows: The Soviet legacy behind Georgia’s authoritarian drift

In the early hours of April 9, 1989, Soviet paratroopers launched a brutal crackdown on peaceful protesters in Tbilisi, the capital of the then-Georgian...

EU Commission plans Russian gas phaseout as MEPs propose easing pre-winter storage targets

Ensuring gas supply security ahead of the winter season, the European Parliament approved in Strasbourg on May 8 the Commission's proposal to extend the...

What chance for peace in Sudan?

The conflict in Sudan has raged for two years, causing immense human suffering, regional instability, arms proliferation and massive displacement of the population. South...

Taking off: Qatar’s strategic rise in global aviation

For Qatar, an important development took place recently as the International Civil Aviation Organization (ICAO), approved the final phase of its own airspace, the...

False economy: Washington will regret closing important diplomatic posts

At this point many readers will have seen press reports indicating that a large number of American embassies and consulates are being studied for...

The Geoeconomic Repercussions of Trump’s Tariff Pause: A Balkan Perspective

On April 2, 2025, U.S. President Donald Trump announced sweeping tariffs under the banner of “Liberation Day”—a dramatic economic maneuver that reintroduced a 10...