HSBC Aims to Lay Off 10,000 Employees as an Effort to Reduce Costs

Tajammul Pangarkar
Tajammul Pangarkar

Updated · Oct 9, 2019

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HSBC intends to wipe out around 10,000 employees from its workforce as a cost-cutting effort. The move arrives just a few months after expelling its chief executive. The figure accounts for around 4% of HSBC’s workforce, which Noel Quinn, HSBC’s temporary CEO, looks to lower costs across the bank panel. The scheme also reveals the moneylender’s most aspiring trial in years to reduce spending. Most importantly, the current layoff will primarily ax high-paid job roles. Reportedly, as of June 2019, the bank had more than 237,000 full-time workers, including around 41,000 UK-based employees.

Thus the bank may declare the start of the new cost-reducing effort and layoffs while announcing its results for Q3. Before this, the bank had announced workforce dismissal in August. At the time, HSBC’s former CEO John Flint abruptly back-steeped from the role after leading the position for one-and-a-half years. Reportedly, Mr. Flint had resigned due to differences of views with Mark Tucker, HSBC’s chairman. They had controversies regarding ways to reduce spending. Besides, in August, the bank had notified about difficult global circumstances associated with rate cuts in the US. It also blamed other aspects like the trade war between the US and China, Britain’s EU divorce, etc.

Regarding the newly scheduled job cuts, some anonymous sources have offered the news. Whereas, an HSBC representative has declined to say a word on the report. Still, it remains unclear which regions will experience the job cuts. While the workers’ union said, the news has surprised employees. Currently, the workers are questioning the management of HSBC. All in all, it is not the first massive job cut effort of HSBC. Before this, in 2011, Stuart Gulliver, Ex-CEO of HSBC group, had announced plans to lay off 30,000 jobs. At the time, the move was a part of an effort to slash $3.5 billion in costs over three years and boost the bank’s return.

Tajammul Pangarkar

Tajammul Pangarkar

Tajammul Pangarkar is a CMO at Prudour Pvt Ltd. Tajammul longstanding experience in the fields of mobile technology and industry research is often reflected in his insightful body of work. His interest lies in understanding tech trends, dissecting mobile applications, and raising general awareness of technical know-how. He frequently contributes to numerous industry-specific magazines and forums. When he’s not ruminating about various happenings in the tech world, he can usually be found indulging in his next favorite interest - table tennis.