Daily Management Review

HSBC to downsize nearly 35,000 employees


HSBC British Bank released the results of 2019 and announced upcoming large-scale reforms. The bank’s shareholder earnings fell by 53% to $ 6 billion, due to write-offs of $ 7.3 billion in global banking and commercial banking.

Håkan Dahlström via flickr
Håkan Dahlström via flickr
Earnings before taxes fell by 33% to $ 13.3 billion, while analysts had expected the figure to reach $ 20.03 billion.

In this regard, the bank introduced a reform program designed to improve performance by 2022. HSBC plans to significantly reduce costs, simplify organizational structure, increase efficiency and competitiveness.

 Commenting on the bank’s plans, Acting CEO of HSBC Noel Quinn in an interview with Reuters said: “The scale of this program is such that the number of our employees in the next three years will decrease from 235 thousand to about 200 thousand.” In part, these reductions will be achieved due to the natural loss of employees leaving the bank by age or for another job.

In the American branch of the bank, which has been showing weak results for many years, HSBC management intends to close a third of the bank's branches (now there are 224 of them) and focus only on international or affluent customers.

source: hsbc.com