HSBC resumes plan to cut 35,000 jobs

HONG KONG: HSBC Holdings Plc has resumed a plan to cut 35,000 jobs that was put on hold by the coronavirus outbreak as it seeks to boost its profitability amid an underperformance in several key markets.

The plan was put on hold in March this year as the virus that emerged in China spread globally, also denting the lender’s plans to pivot its business further to Asia, where it makes the bulk of its revenue. HSBC joins other banks such as Deutsche Bank AG in resuming jobs cuts that were put on hold.

“Since February we have pressed forward with some aspects of our transformation programme, but we now need to look to the long term and move ahead with others, including reducing our costs,” chief executive officer Noel Quinn said in a memo obtained by Bloomberg. It was confirmed by a bank spokeswoman.

“Against this backdrop, I’m writing to let you know we now need to lift the pause on job losses,” Quinn said. “I know that this will not be welcome news and that it will create understandable concern and uncertainty, but I want to be open with you about the reality of the current situation.”

Quinn in February unveiled the restructuring that involved cutting the sprawling global lender’s 235,000-strong workforce by about 35,000 over the next three years. The lender is targeting cost reductions of Us$4.5bil at underperforming units in the United States and Europe in the plan. At the same time, it plans to accelerate investments in Asia.