Fears over job cuts arise from HSBC restructuring plans

Fears over job cuts arise from HSBC restructuring plans

Employees at HSBC are concerned about potential job cuts after the bank announced it plans to restructure its business amid an “unacceptable” performance in parts of Europe and the US.

The bank’s interim chief executive Noel Quinn said plans to improve the Europe and US divisions of the bank were “no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth”.

Mr Quinn said and that the bank was “accelerating plans to remodel them, and move capital into higher growth and return opportunities.”

Earlier in October, it was reported that HSBC was planning to cut up to 10,000 jobs.

The bank currently employs 238,000 people.

The restructuring of the plans comes as HSBC’s profit before tax decreased by 18% to $4.8 billion (£3.8bn) in the three months to September.

The bank has faced uncertainty arising from Brexit, the US-China trade war and the ongoing civil unrest in Hong Kong.

However, Mr Quinn emphasised that “parts of our business, especially Asia, held up well in a challenging environment in the third quarter”.

The bank has reported that profit before tax in Asia increased by 4% to $4.7bn in 3Q19, with a resilient performance in Hong Kong.

 

Share icon
Share this article: