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19 February 2020
INVESTMENT

HSBC to undergo another overhaul, plans to cut 35,000 jobs

The cutbacks will extend into parts of HSBC’s European and US investment banking businesses, particularly in fixed income

The lender plans to bolster its investment banking units in Asia and the Middle East/Bloomberg

by Bloomberg

HSBC Holdings is set to slash around 35,000 staff from its workforce and is taking $7.3 billion of charges in its most dramatic overhaul under Chairman Mark Tucker.

The London-based lender is targeting cost reductions of $4.5 billion at underperforming units in the US and Europe. In the meantime, it will accelerate investments in Asia, where the bank draws the bulk of its profit but is grappling with risks from the Hong Kong protests and China’s coronavirus outbreak.

The board is also deciding whether the sweeping overhaul announced by interim boss Noel Quinn is enough to secure him the top job permanently.

In the US, assets linked to its trading operations will be nearly halved under the new plan. HSBC is also scaling back its retail network by 30 per cent.

The lender will bolster its investment banking units in Asia and the Middle East. Questions have mounted over HSBC’s relatively poor returns given its exposure to many of the world’s fastest-growing economies, particularly China.

Executives said on a conference call that the loan book has shown great resilience so far in the face of the coronavirus outbreak. However, the bank warned the virus and economic disruption in Hong Kong may impact its 2020 performance.


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