Report says losses will be in addition to almost 5,000 redundancies the banking group has already announced
A report in the Financial Times says that HSBC is planning to announce 10,000 job losses when it releases its financial results later this month.
According to an unnamed source, the largest share of job losses will be in Europe but there are also likely to be cuts in North America as part of interim chief executive Noel Quinn’s cost-reduction plans.
“HSBC has a structural profitability challenge in the Americas and Europe and headcount reduction may be appropriate,” said analysts at Citigroup Inc.
HSBC has already announced 4,700 redundancies and the 10,000 jobs mentioned in the FT article would be additional.
The UK-headquartered banking group generated almost 80% of its pre-tax profit in Asia in the first half of the year and, apparently undeterred by US-China trade relations, it is hiring around 600 staff for its wealth management business in Asia over the next few years.
The FT source said that HSBC is assessing the validity of having a large European headcount given the large share of revenue being generated in Asia.
HSBC to axe up to 10,000 jobs in cost-cutting drive https://t.co/30cmJA5gnQ
— Financial Times (@FT) October 6, 2019
