In a bid to reduce costs across the banking group, HSBC is reportedly planning to cut up to 10,000 ‘high-paid’ jobs. The decision has been taken by the bank’s new interim chief executive Noel Quinn. Quinn was named as the interim CEO in August after the HSBC announced the unexpected exit of John Flint, saying the bank needed a change at the top management to properly address a challenging global environment. His exit was a result of differences of opinion with Mark Edward Tucker, who assumed his role as non-executive Group Chairman two years ago, over topics like cost-cutting and other related things.
According to a report, the plan represents HSBC’s most ambitious attempt to cut costs in years. The cut will primarily focus on high-paid employees and the move will significantly reduce the lender’s headcount. An estimated 238,000 people are working for the British multinational investment bank. People privy to the development claimed that an official announcement regarding the latest job cuts and cost-cutting drive could be announced when HSBC third-quarter results later this month. These job cuts would be over and above 4,700 redundancies that the lender recently announced. It described the current scenario as ‘an increasingly complex and challenging global environment.’
“Things are getting tougher and we were aware of the fact for the past few years that we need to do something about our cost base and job cuts is the only option,” said one of the people. HSBC, one of the largest banking and financial services institutions in the world, has been seeking to increase profit by cutting costs and increasing its focus on Asian growth. Lender’s American depositary receipts are down 9 percent year to date, compared to the S&P 500’s 18 percent gain. The move is in line with other lenders who have opted for similar measures to battle global headwinds. Last month, Commerzbank, the second-largest lender of Germany, announced that it will shut 200 branches and planning to cut the equivalent of 4,300 full-time as it restructures.