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HSBC could cut 10,000 jobs globally – reports

  • 08/10/2019
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HSBC could cut 10,000 jobs globally – reports
HSBC has devised a cost reduction strategy reportedly involving the potential loss of 10,000 jobs across the group, according to reports.


The Financial Times reported that the banking group was preparing a “substantial reduction in headcount,” from the current 238,000, according to two sources who were briefed on the plan. 

HSBC declined to comment when approached by Mortgage Solutions.

The job cull strategy was reportedly approved by interim chief executive Noel Quinn, who was appointed on 5 August to succeed John Flint who stepped down.

On the same day, HSBC’s interim results indicated that a changed outlook – including soft US interest rates and Brexit uncertainty – would impact returns.

“We are managing operating expenses and investment spending in line with the increased risks to revenue,” the interim statement said.

The FT reported “very hard modelling going on” within the bank to understand costs and revenues globally. 

The job losses, which are believed to target high-paid roles, would come in addition to 4,700 redundancies announced in April.

They reflected “an increasingly complex and challenging global environment,” characterised by low interest rates, trade conflicts and Brexit uncertainty, the Financial Times said.

The newly-appointed Quinn was reportedly collaborating on the plan with chief financial officer Ewen Stevenson. Stevenson was known for reducing costs as CFO at RBS.

Quinn has been chief executive of HSBC global commercial banking since 2015 and has clocked up 32 years with the bank.

The job losses are believed to affect all four banking divisions comprising multi-national corporations, smaller businesses, retail customers and wealthy individuals. HSBC is one of the top six big lenders in the UK mortgage market.

More details of the plan are thought likely to be revealed by HSBC along with its Q3 earnings release on 28 October.


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