HSBC plans to cut 35,000 jobs due to the global economic crisis triggered by coronavirus pandemic. The bank is also planning to reshape its business by moving business from Europe and the US to Asia.
The Hongkong and Shanghai Banking Corporation (HSBC) announced on Friday that the bank plans to cut thousands of jobs for a massive restructuring due to the great impact of the coronavirus pandemic on the global economy.
Noel Quinn, the HSBC chief executive, said the measures aim to decrease annual costs by US 4.5 billion in an internal memorandum on Wednesday. All economic forecasts are pointing in a challenging time, he added. The bank originally intended to keep 235,000 staff in its headcount, but make the number close to 200,000 in the medium term. The cost cuts would be completely applied by 2022.
The job cuts were stopped in March when coronavirus pandemic outbroke in the cities from London to Singapore. The bank chooses to announce the measures today are to provide better support to its staff during the current uncertainty.
The bank is now focusing on transformation. The company would bring underperforming businesses in Europe and the US to growth markets in Asia. Investment bank in Europe and the US will be contracted. American retail branch network would also be cut by 30 percent.