Europe’s Largest Bank: HSBC Will Fire 35,000 Employees; 224 Branches Will Be Shut Down
London based HSBC, which is the world’s 7th largest and Europe’s largest, is all set to trigger a massive job cut, across the globe.
Around 35,000 employees will be terminated in this exercise, besides shutting down 224 branches.
Here are more details..
HSBC Will Fire 35,000 Employees
Disappointed with lower revenues and higher losses, HSBC has now announced a massive restructuring exercise.
More than 35,000 employees will be terminated in the next three days, along with shedding off $100 billion of assets, and closing down more than 200 branches in the US, as the bank is desperately looking for saving costs.
Noel Quinn, interim chief executive said, “The totality of this program is that our headcount is likely to go from 235,000 to closer to 200,000 over the next three years,”
In the US, HSBC will focus extensively on working with ‘richer’ clients, and will close down 224 branches, to save money and resources.
HSBC profits before taxes dropped by 30% to reach $13.35 billion in 2019, which is more than $6 billion less than what analysts had predicted.
HSBC’s Massive Restructuring Exercise: Main Highlights
In order to reduce costs, and boost revenues, HSBC will execute the following steps:
- Terminated 35,000 employees, globally
- Merge private banking and wealth businesses
- Will stop European stock trading completely
- Close down 224 retail banking branches in the US
Coronavirus Impacting HSBC?
HSBC has their biggest operations running from Hongkong, where they serve thousands of corporates and businesses.
Due to the coronavirus outbreak, there has been a slowdown in their business, and this has been confirmed by HSBC.
Infact, less employees are reporting to work, and less customers are meeting them now, and HSBC has warned that this can lead to long term side-effects.
Since the entire supply chain is disrupted, there will be more bad loans and less business, and this translates to even worse financial numbers for HSBC.
There has been no news if HSBC’s terminations will impact India or not.
We will keep you updated, as more details come in.