Banking giant HSBC has unveiled a major restructuring plan that includes 35,000 job cuts. The move came as the bank’s net profit plunged 53% last year. HSBC is also slashing $100 billion in assets and closing many branches. “This represents one of the deepest restructuring and simplification programs in the bank’s history,” explained interim CEO Noel Quinn.
Major Layoffs and Restructuring at Hand
One of the world’s largest banks, HSBC announced this week that it will be undergoing a major business overhaul. The London-based financial services company currently has 235,000 full-time employees across 64 countries and territories. According to reports, the bank plans to lay off around 35,000 workers over the next three years, reducing approximately 15% of its global workforce. Interim HSBC CEO Noel Quinn said during an earnings presentation:
This represents one of the deepest restructuring and simplification programs in the bank’s history.
As of Dec. 31, 2019, HSBC had $2.7 trillion in assets, more than 40 million customers and 197,000 shareholders in 130 countries and territories, its annual report details. Most of its customer accounts (35%) are in Hong Kong, followed by the U.K. (29%), other Asian countries (10%), and North America (10%).
As part of its restructuring plan, HSBC will also ditch $100 billion in assets by the end of 2022 and shrink its investment banking division. Its global banking and markets team will focus more on Asia and the Middle East where the bank makes most of its profit.
Since its U.S. operations have underperformed for years, a third of all HSBC branches in the U.S. will be shut down.