HSBC, which is the world’s 7th largest bank, and Europe’s biggest bank, is about to unleash a massive layoff exercise.
10,000 HSBC employees will be asked to leave, as HSBC is looking at saving costs.
Will this layoffs impact Indian employees?
HSBC Announces Layoffs: 10,000 Will Be Fired
HSBC has around 2.3 lakh employees all over the world. 10,000 employees will be 4% of their workforce, and they will soon be fired.
This report can come in from Financial Times, which has described this as cost cutting measure.
Will Indian Employees Get Impacted?
As per incoming reports, this massive layoff exercise will be primarily targeted for European operations.
Most of the layoffs is expected to happen within European branches and offices, as analysts are questioning the logic of having such a huge workforce in a region which is not providing enough returns.
Some of the Asian countries are providing double-digit growth for HSBC, whereas in Europe, their growth rate has almost stagnated.
Hence, as of now, there is nothing to worry about for Indian employees.
There are around 14,000 employees in India, working for HSBC.
In June this year, HSBC had announced the firing of 200 employees from their Pune and Hyderabad offices. These layoffs happened mainly in the technical services division, as they comprehended weak demand for the same.
Who Has Initiated This Layoffs?
As per the report by Financial Times, HSBC interim Chief Executive Officer Noel Quinn has reportedly initiated this current wave of layoffs, targeted to save costs, and ramp up their profits.
In the month of August, he had announced terminating 4700 employees, for the same reason.
John Flint, who was the previous CEO too focussed on layoffs as a means to save costs.
But his strategies were repeatedly questioned, and he quit abruptly only within 18 months of his appointment.
Interestingly, all major European banks: Deutsche Bank AG, Societe Generale SA and Barclays Plc have initiated massive job cuts to cut down costs.
We will keep you updated, as we receive more details.
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