HSBC to cut around 15 per cent of its global workforce after profits plunge
By James Young | 18th February 2020
Banking giant HSBC is set to cut around 15 per cent of its global workforce after announcing a major cost-cutting programme in response to a plunge in annual profits.
Profits for 2019 fell by a third at the Asia-based banking giant to $13.3billion (£10.2bn), significantly lower than a forecast of $20billion - the total the bank reported last year.
That comes despite a rise in reported revenue from $53.78bn to $56.10bn for the year ended December 31, 2019.
Noel Quinn, Group Chief Executive, said: "The Group's 2019 performance was resilient, however parts of our business are not delivering acceptable returns.
"We are therefore outlining a revised plan to increase returns for investors, create the capacity for future investment, and build a platform for sustainable growth.
"We have already begun to implement this plan, which my management team and I are committed to executing at pace."
That revised plan will lead to the company shedding as many as 35,000 jobs across the globe as it commits to scale back its headcount over the next three years.
HSBC currently employs more than 40,000 staff across the UK - the largest in any single country - although the company refused to answer how many jobs are under threat.
The company said it would shed around $100 billion in assets and a reduction in its cost base of around $31billion.
According to the annual report of the HSBC UK bank PLC, there are 17,356 staff employed in retail banking and wealth management and a further 5,058 in commercial banking.
A further 600 staff are employed in what the company terms Global Banking and Markets, Private Banking and its Corporate Centre, making a total headcount of 23,035.
There are a further 21,571 UK staff that are employed by the HSBC Banking Group.
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