HSBC Starts Firing 35,000 Employees To Save $4.5 Billion; Indians Can Lose Their Jobs
In a startling development, HSBC is planning to cut around 35000 jobs as the bank is struggling to deal with its losses. The company has also decided not to hire any more candidates as well.
Find out all the details about HSBC’s plans right here!
Hiring And Firing At HSBC: 35,000 People To Lose Jobs, Hiring To Be On Hold
The biggest bank of Europe HSBC has now decided to resume match plans of letting go of 35000 people working with the bank. The bank had put this decision on hold after the outbreak of the coronavirus pandemic there will also be a freeze on almost all external hiring.
A memo was sent by Chief Executive Noel Quinn to 235000 employees of HSBC that reveals and confirms both news.
Quinn also revealed, “We could not pause the job losses indefinitely – it was always a question of ‘not if, but when.” As per Quinn, the measures of hiring and firing in HSBC was announced in February and back then it was even more necessary then and it is today.
HSBC had announced its plans of restructuring to cut 4.5 billion USD in cost, which was postponed in March due to the coronavirus outbreak spreading worldwide as it would be unethical to fire people amidst a pandemic.
However, as the bank still is facing losses and a challenging time in the future has been economically forecasted. Quinn has also asked senior executives to find out alternatives for cost cutting in the next half of 2020.
Senior Bankers And Support Staff Across The Globe To Be Affected
As per reports, a majority of the job cuts will most probably happen in the back office at Global Banking and Markets (GBM), where HSBC carries out investment banking and trading.
Senior bankers in Britain who work in GBM and HSBC head offices will also be affected by the job cuts along with the support staff in the businesses of HSBC across the globe.
Since the beginning of March, the shares of HSBC have fallen by 27% due to the coronavirus pandemic required the bank to set aside 3 billion USD in bad loan provisions in the first quarter earnings.
Indian Employees Will Be Impacted?
As of 2018, HSBC employed around 38,000 Indians, and a large part of the jobs here in India are related to backoffice and customer support.
Now, since HSBC is firing employees from these two profiles, it’s highly likely that a lot of layoffs will happen in India as well.
HSBC hasn’t yet revealed, how many employees from India can be impacted due to this restructuring exercise.
We will keep you updated, as more details come in.