Stuart Gulliver, Chief Executive Officer of HSBC Holding.

Stuart Gulliver, Chief Executive Officer of HSBC Holding.

Plan to sack up to 20,000 staffs worldwide for serious costs saving by the end of 2017.

HSBC Holdings (0005.HK), the biggest bank in Europe, is planning to sack 10,000 to 20,000 staffs across its global workforce in a bid to reassure its shareholders that bosses are focusing on cutting costs. However, the number has not yet been finalised , details will be announced at an investors presentation on 9 June.

Meanwhile, the job cutting excludes Brazil and Turkey, and headquarters in UK.

HSBC had already sacked more than 30,000 employees as part of its restructuring plan in 2011, 3000 jobs were cut in HK. The group has around 258,000 employees at the end of 2014. Due to fast-changing nature of bank regulations, the group set a target 2 years ago to reduce its employee base to between 240,000 and 250,000 by 2016 and thus the deadline will be deferred to the end of 2017.

 

HSBC shares fell 0.41 percent to HK$73.55 after announced the layoff plan.

HSBC Holdings could announce thousands of job cuts at a strategy day next week, Sky News reported on 1 June, part of chief executive Stuart Gulliver’s overhaul of Europe’s biggest bank.

The plan could also see Gulliver sell operations in Brazil and Turkey and take a knife to HSBC’s investment bank.

HSBC declined to comment on the Sky report. It was unclear how many of those cuts would come from moves already announced by the lender.

Jim Antos, analyst at Mizuho Securities Asia, told Reuters TV that more job cuts may not be enough to appease investors.

“The share price has been dead for several years now. What the market is looking for is something pretty substantial like a new strategy, a new theme,” he said in an interview with Reuters TV in Hong Kong on Tuesday.

“They’ve had tens of thousands of job cuts already and it’s not been the answer so far. It’s repeating the same pattern,” Antos said.

Source: Reuters News

 

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