HSBC restructure plan fuels job cut fears
HSBC is planning to restructure its business after the banking giant said its performance in parts of Europe and the US was “not acceptable”.
Interim chief executive Noel Quinn said plans to improve these divisions were “no longer sufficient” and that it was “accelerating plans to remodel them”.
Earlier this month, the bank, which employs 238,000 people, was reported to be planning up to 10,000 job cuts.
On Monday, Mr Quinn said there was “scope” for potential cuts, “There is scope throughout the bank to clarify and simplify roles, and to reduce duplication,” he told Reuters. However, Mr Quinn did not provide any further details on potential job cuts.
Mr Quinn took over as HSBC’s acting chief executive in August following the shock departure of John Flint. His remarks came as the bank reported worse-than-expected third-quarter profits.
Europe’s largest bank said profit before tax fell 18% to $4.8bn (£3.8bn) in the three months to September, and also warned of a “challenging” environment ahead.
HSBC has been navigating uncertainty arising from Brexit, the US-China trade war and ongoing unrest in Hong Kong.
However, Mr Quinn praised the bank’s performance in Asia – the region where it makes most of its profits. “Parts of our business, especially Asia, held up well in a challenging environment in the third quarter,” said Mr Quinn.
“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.”