Banking giant HSBC plans to cut some 35,000 jobs worldwide during the next three years as it restructures and increases it focus on Asia.
HSBC's total workforce will fall from 235,000 to about 200,000 as the bank reduces costs and builds ‘a simpler, more efficient and empowered organisation,’ interim chief executive Noel Quinn said on Tuesday.
The bank reported a 33-per-cent fall in its annual profit last year, to 13.3 billion dollars, as revenue rose by 4 per cent and costs were up 22 per cent.
‘The group's 2019 performance was resilient, however parts of our business are not delivering acceptable returns,’ Quinn said.
‘We are taking decisive action today to address those underperforming parts of the business, to redistribute capital to the growth opportunity, to simplify our business - and in so doing reduce the cost base of HSBC,’ he said.
Finance chief Ewen Stevenson said the bank plans ‘meaningful’ cuts to its 40,000 British staff.
Unite, one of Britain's biggest trade unions, demanded urgent talks with the bank about the ‘serious impact’ of its restructuring plan.
HSBC said it wants to focus its British-based investment banking business on ‘supporting UK mid-market clients and international corporate clients through our London hub,’ while reducing other services and shifting some to Asia.
‘Despite HSBC still making billions of dollars of profit, once again hard-working and dedicated staff have woken up to the news that their job could be at risk,’ said Dominic Hook of Unite, which represents some 20,000 HSBC staff in Britain.
‘Banks are always going on about their human face in their marketing campaigns, but it is always the front line staff that bear the brunt of the cost-cutting, salami-slicing plans,’ Hook said. ‘We need to draw a line in the sand over this business model.’
Rebecca Long-Bailey, a leading lawmaker from Britain's main opposition Labour party, tweeted that the bank's restructuring is ‘hugely concerning for HSBC staff, and for the potential impact on our high streets if restructuring means more branch closures.’
HSBC said it also plans to reduce its US branch network by about 30 per cent and ‘streamline functions to simplify our US business and lower costs.’
The bank employs some 10,000 people in the United States as well as 40,000 in India, 31,000 in Hong Kong, 28,000 in China, 16,000 in Mexico and 8,000 in France.
