HSBC to cut 35,000 from global workforce

THE boss of HSBC has announced the bank’s biggest change in years, as it prepares to cut its headcount by approximately 35,000 around the world, including jobs in the UK.

Interim chief executive Noel Quinn said the number of people employed by the lender will go from 235,000 to 200,000 over the next three years – reducing the bank’s workforce by 15 per cent.

Finance chief Ewen Stevenson said there will be “meaningful” cuts in the UK where the bank employs around

40,000 people.

Dominic Hook, from the Unite union, said he is “seeking urgent discussions” with HSBC management to understand what it will mean for UK staff.

“Despite HSBC still making billions of dollars of profit, once again hardworking and dedicated staff have woken up to the news that their job could be at risk,” he added.

The bank did not give a breakdown of where job losses are expected, and it added that 25,000 people leave the business every year of their own accord.

Smart hiring around these departures could allow HSBC to cut figures without firing too many people, bosses stressed.

The move comes as HSBC plans to slash more than $100bn (£77bn) from its risk-weighted assets.

Banks must hold capital against assets, such as loans, based on their riskiness, so that they can take the blow if the asset is lost.

HSBC reported a 33% fall in pre-tax profit for 2019 to $13.35bn (£10.2bn) – below analyst expectations.

The bank said the drop was due to “a goodwill impairment” of

$7.3bn (£5.6bn). “This arose from an update to long-term economic growth assumptions, which impacted a number of our businesses,” HSBC’S annual results statement said.

Shares fell by as much as 5.9% to 555.9p yesterday morning.

The company also warned that the outbreak of coronavirus had caused “significant disruption” for its business.

Last August HSBC announced 4,700 job cuts from its then workforce of 238,000.