HSBC to layoff staff across North Africa, Turkey, and the Middle East

The global banking, as well as markets and commercial banking units will be most impacted.

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HSBC Holdings is planning another round of layoffs, wherein hundreds of its employees in the Middle East, North Africa and Turkey may be rendered jobless, as part of its cost-cutting measures.The maximum impact will be felt by the global banking and markets and commercial banking units, where the process of job cuts will start next month. About four per cent of HSBC’s total workforce is employed in North Africa, Turkey and the Middle East. That accounts for about 9600 full-time/regular employees.

The Bank may partly stop stock trading in certain markets in the West. There is a plan to sell off its French retail bank as well, which may render about 8000 people jobless.

It is reported that these layoffs are aimed at improving the Bank’s return on capital, as part of the Project Oak cost-reduction measures that began in early 2019. This project focusses mainly on job cuts.

HSBC will soon be announcing its third-quarter results amidst pressure to reveal to investors the plans to manage repercussions of the slump in Hong Kong’s economy, and deal with China’s trade war with the US, even while trying to ensure growth in Asia.

The Bank is presently debating whether acting CEO, Noel Quinn, should be appointed CEO or whether a candidate from outside should be considered for the post. It is reported that Quinn had clearly revealed his intention to function not just as an interim CEO but as the CEO of the Bank. He had made it clear that he would do everything in the interest of the Bank, which explains the decisions that he is taking as of now.

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