HSBC Will Cut 20,000 Jobs Globally
HSBC Holdings PLC has announced that it will be cutting 20,000 jobs in its worldwide operations.
According to a BBC report, that move amounts to 7% of its entire global manpower. 8,000 will come from the U.K.
This is part of the new strategies planned to be implemented by the company, as stated in a release from Stuart Gulliver, the Group’s Chief Executive published on Tuesday.
According to the same release, “HSBC is now undertaking a significant reshaping of its business portfolio. It is redeploying resources to capture expected future growth opportunities and adapting to structural changes in the operating environment.”
Gulliver further said:
“We recognise that the world has changed and we need to change with it. That is why we are outlining the following ten strategic actions that will further transform our organisation:
- Reduce Group RWAs by at least circa 25% and redeploy towards higher performing businesses; restore GB&M profitability;
- Sell operations in Turkey and Brazil but plan to maintain a presence in Brazil to serve large corporate clients with respect to their international needs; continued application of six filter process;
- Rebuild NAFTA profitability;
- Set up UK Ring-Fenced Bank;
- Realise USD 4.5-5.0bn cost savings, deliver flat costs by end 2017;
- Deliver growth above GDP from international network;
- Capture growth opportunities in Asia: Pearl River Delta, ASEAN, Asset Management, Insurance;
- Extend leadership in RMB internationalization;
- Complete Global Standards implementation; and
- Complete Headquarters review by end 2015.”
As to the reports of HSBC pulling out of U.K., it is confirmed that the company is considering this option and will make an announcement this year.