Job cuts loom at HSBC

Significant job cuts could be on the cards for HSBC staff after chief executive Noel Quinn signaled a major restructuring programme across the bank’s UK and US business lines.

Speaking during the presentation of the bank’s Q3 results, Quinn stated: “Parts of our business, especially Asia, held up well in a challenging environment in the third quarter. However, in some parts, performance was not acceptable, principally business activities within continental Europe, the non-ring-fenced bank in the UK, and the US. Our previous plans are no longer sufficient to improve performance for these businesses, given the softer outlook for revenue growth. We are therefore accelerating plans to remodel them, and move capital into higher growth and return opportunities.”

His remarks come as HSBC reported an 18% drop in profits during the third quarter and warned of a revision to revenue outlook for the year ahead.

Earlier this month, the bank, which employs 238,000 people, was reported to be planning up to 10,000 job cuts.

“We will act to rebalance our capital away from low-return businesses and adjust the cost base in line with the actions we take,” the bank states. “These actions, or any continuing deterioration in the revenue environment, could result in significant charges in 4Q19 and subsequent periods, including the possible impairment of goodwill and additional restructuring charges.”