HSBC to begin massive layoffs

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.