HSBC are to cut 35,000 jobs over the next three years and will shed £70bn of assets after profits fell by a third.
The bank are to become leaner and more competitive as HSBC has struggled with slowing growth in their major markets, coronavirus, Brexit and lower central bank interest rates.
Noel Quinn, interim chief executive, told Reuters, “The totality of this program is that our headcount is likely to go from 235,000 to closer to 200,000 over the next three years.”
In a statement HSBC said the coronavirus outbreak has caused “significant disruption” for their staff, suppliers and customers.
In a statement HSBC said, “Depending on how the situation develops, there is the potential for any associated economic slowdown to impact our expected credit losses in Hong Kong and mainland China.
“Longer term, it is also possible that we may see revenue reductions from lower lending and transaction volumes, and further credit losses stemming from disruption to customer supply chains. We continue to monitor the situation closely.”
Lee Biggins, founder and CEO of CV-Library said, “It’s not surprising that HSBC has been forced to make such significant cuts to its workforce. In fact, our job market data shows that instability and uncertainty was rife within the finance industry last year; with job openings fluctuating massively month-on-month. While our latest data shows that finance job openings grew by 2.4% in January, we know that the company isn’t alone when it comes to restructurings.
“There is no doubt that this news will be troubling for HSBC employees across the UK. However, it’s important that they don’t lose faith in finding and securing a new job. The UK economy is beginning to thrive again and companies across the country are investing in new talent.
“Indeed, our data shows that UK job openings grew by 2.8% last month and salaries are on the rise too. Eager professionals should make the most of these opportunities now.”