FT: HSBC to cut 10,000 jobs

Galtero Lara
Octubre 10, 2019

"We've known for years that we need to do something about our cost base, the largest component of which is people - now we are finally grasping the nettle", an anonymous source told the Financial Times.

The previous round was announced in August, when Chief Executive Officer John Flint abruptly departed after 18 months leading the bank.

Job cuts could be announced when HSBC reports third-quarter results at month end.

A person familiar with the plan said that this cost-cutting exercise "would not prevent the bank from continuing to hire "revenue-generating" staff in high-growth regions in Asia".

A HSBC spokesman declined to comment on the report.

The bank has been running a scheme "Project Oak" directing managers to reduce the size of their teams.

Banks across Europe are cutting jobs as they struggle to deal with a combination of low interest rates and sputtering economies. At the same time, it also announced the first round of 4,000 job cuts that were supposed to help it deal with the global economic uncertainty.

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The HSBC stock had a better performance in September at the FTSE 100 compared to August.

The job reduction comes as a sign that the slump may be more permanent that previously thought, going beyond trade-war tension and easing monetary policy cycle in Europe and the US.

Chief Financial Officer Stevenson Ewen said in August that the bank's returns from Europe were "unacceptable", while in the United States, the bank said it would miss the return for the next year.

Starting at the top, HSBC Securities Services' global head of business development, Nick Bruce was among the latest wave of laid-off employees after having served with the lender since 2004.

Shares in HSBC fell in early trading in London but later recovered.

'The cut to almost 0.4 per cent of the workforce is HSBC acknowledging the problems it faces from a slowing economy in China, unrest in Hong Kong and lower interest rates across the U.S. and Europe, ' said Jasper Lawler, head of research at London Capital Group.

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