HSBC, the British multinational investment bank and financial services holding company, may lay off about 10,000 employees in a major step towards cutting costs. Those with high salaries will be targeted.
It is reported that when the Company releases its third-quarter report, it may also announce the downsizing plan.
Earlier this year, there were reports of an impending layoff, mainly due to business falling and due to the trade conflict between the US and China. Brexit as well as disturbance in the Hong Kong market are only adding to the finance company’s woes.
In August, John Flint, CEO of HSBC had suddenly stepped down in a surprise move, apparently to help the bank when its Hong Kong-listed shares had fallen about 15 per cent. Although Flint had been with HSBC since 1989, he had served as CEO for just over a year. He was temporarily replaced by Noel Quinn, who was head of global commercial banking.
HSBC had been finding it difficult to appease investors. It was Flint’s primary agenda to ensure that revenue gains happen at a greater pace than increase in costs. However, he was unable to achieve that in the first year as CEO.
The Company has been struggling between the urgent need to invest in its global businesses and handling the pressure of getting its costs under control. Although the Bank’s budget had reportedly factored in investments of about five billion dollars in its budget this year, it has been very careful in doing so, and has hardly used a billion dollars till now.