HSBC has announced that it will be cutting 35,000 jobs due to profits dropping by almost a third in 2019.
Due to this, the bank is planning on making cost cuts of £3.5 billion by 2022. The bank is planning to downsize mainly in its European and US locations.
Noel Quinn, chief executive of HSBC said the bank will be reducing its headcount from 235,000 to around 200,000 over the next three years.
Mr Quinn said:
Parts of our business are not delivering acceptable returns. We are therefore outlining a revised plan to increase returns for investors. We have already begun to implement this plan, which my management team and I are committed to executing at pace.
The bulk of the bank’s revenue comes from Asia, however, the coronavirus is causing disruption to this market and this area of the world.
These job cuts represent around 15 per cent of their workforce. The bank operates in over 50 countries, such as North America, Europe, the Middle East and Asia. It also employs more than 40,000 individuals in the UK.
Lee Biggins, founder and CEO of CV-Library said:
It’s not surprising that HSBC has been forced to make such significant cuts to its workforce. In fact, our job market data shows that instability and uncertainty was rife within the finance industry last year; with job openings fluctuating massively month-on-month. While our latest data shows that finance job openings grew by 2.4 per cent in January, we know that the company isn’t alone when it comes to restructurings.
There is no doubt that this news will be troubling for HSBC employees across the UK. However, it’s important that they don’t lose faith in finding and securing a new job. The UK economy is beginning to thrive again and companies across the country are investing in new talent. Indeed, our data shows that UK job openings grew by 2.8 per cent last month and salaries are on the rise too. Eager professionals should make the most of these opportunities now.