In a recent press briefing, HSBC has confirmed that they will ax 35,000 jobs within 2022 and invest more in digital systems. They currently have 235,000 employees all over the world as of now. Within two years, they plan to reduce the number to an even 200,000. The decision came to light after an earnings call on February 18.
The interim chief executive, Noel Quinn confirmed that the company will cut $4.5bn worth of costs to reduce its plunging profit and give better returns to its shareholders. This is the last phase of the company’s decade long retreat from the global arena to focus on its Asian cash cows.
HSBC, currently operating in 64 countries, has hinted at major job cuts and branch closing all over the United Kingdom. It employs 40,000 people in the UK including blue & white collars. The union officials called an urgent meeting to discuss this sudden announcement by HSBC.
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Despite this nifty call to action, HSBC is still spending heavily on its employee bonuses which exceeds $3bn+ worldwide. The recent signing of Chief Financial Officer saw him getting a signing bonus of $1Million in addition to his $4.9 M salary package.
The company has also issued a warning regarding coronavirus in China. Individual clients may fall ill, corporate clients may have to suffer from supply chain regulations. HSBC is monitoring the situation closely so that they can take the necessary steps upon any escalation of the virus.
The Asian market is a large plan in HSBC’s new restructured plan. However, if the coronavirus persists, they will have to pivot quickly from their original plan and focus elsewhere.