HSBC to cut 35,000 jobs as profits fall by a third
HSBC has announced it will axe 35,000 jobs worldwide as part of a major restructuring after the bank’s profits fell by a third last year, APA reports citing Independent.
The bank is aiming to scale back its headcount from 235,000 to 200,000 over the next three years as it attempts to cut £3.5bn in costs by 2022 and shed more than £70bn of assets.
It said last year’s fall in profits was largely due to £5.6bn in write-offs related to its Global Banking and Markets and Commercial Banking divisions in Europe.
The bank has been carrying out a corporate overhaul designed to boost profitability by focusing on high-growth markets in Asia while shedding businesses and workers in other countries.
“Parts of our business are not delivering acceptable returns. We are therefore outlining a revised plan to increase returns for investors,“ Noel Quinn, the bank’s interim chief executive, said in a statement.
“Our immediate aims are to increase returns, create the capacity to invest in the future, and build a platform for sustainable growth.”
The bank said it would shrink its sales and trading and equity research in Europe and shift resources to the Asian markets, which account for around half of HSBC’s revenue and 90 per cent of profits.
In the US, HSBC plans to grow its international-client corporate banking business.
Slow economic growth in HSBC’s major markets has also taken its toll.
The bank said the coronavirus outbreak has caused “significant disruption” for its staff, suppliers and customers, especially in the Chinese mainland and in Hong Kong.
“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,” the bank warned.
“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.”
Britain’s protracted withdrawal from the European Union, and the uncertainty this has brought, along with historically low interest rates around the world have similarly impacted HSBC’s profitability.
The bank operates in more than 50 countries across the globe, and employs more than 40,000 people based in the UK.
This will be the third time in a decade that HSBC has launched a structural overhaul in a bid to lift falling profits.
Number of confirmed coronavirus cases in Germany surges to 79,696, death toll reaches 1,017
WHO: During the day, about 73,000 people worldwide have been infected with the coronavirus
Georgian Health Minister: "The number of cases of coronavirus is expected to reach a peak from the second half of April"
Spain submits ambitious 2030 energy plan
WHO: Our support for the Azerbaijani government on tests not so much, government itself purchases more tests
WHO Representative: No need to test everyone for coronavirus
Russia’s cabinet allocates $66 million for regions to support staff fighting coronavirus
Latvia confirms first coronavirus death
Domodedovo Airport closes its international flights sector
Famous American musician of Armenian origin supports appeal of Azerbaijani Community of Nagorno Garabagh
UK death toll passes China to reach 3,605 - an increase of 684 in 24 hours
COVID-19 situation in Russia develops favorably so far, says minister
Dutch coronavirus deaths rise to 1,487
Singapore PM to announce new coronavirus measures on Friday
Bolsonaro says Brazil cannot take months of isolation
Brent price increases by more than 15%
175 Azerbaijani citizens more brought from Istanbul and London to country
Winner announced in Azerbaijan championship
Coronavirus-positive UK Prime Minister Boris Johnson to remain in isolation
Kremlin: Putin to discuss oil market with largest Russian oil companies
Azerbaijan's MES temporarily suspends technical inspection of low-displacement ships
Turkey applies to add 4 cultural values to UNESCO list
Legendary shoe designer Sergio Rossi dies
Coronavirus cases in Kazakhstan hits 453
Tokyo’s Olympic village could be used as coronavirus hospital
Dombrovskis: "EU open to all options to finance coronavirus fight"
Ambassador: “Australia does not recognize “elections” held in Nagorno Garabagh”
Russia registers new COVID-19 test system
EBRD pledges urgent financing for Azerbaijani companies
Iran records 134 coronavirus deaths in 24 hours
Number of coronavirus cases in Spain surges to 117,710, death toll nears 11,000
UN secretary general: We must prepare for the worst and fight the virus for all of humanity
Russian Railways cancels several long-distance trains from April 7
Russian deputy: "So-called ”elections” held by separatist regime are not only senseless, but also dangerous"
Azerbaijan commissions website "icaze.gov.az" amid permissions to leave homes during special quarantine regime
Google releases location data to show if coronavirus lockdowns working in 131 countries
Iraq bans Reuters for three months over coronavirus report
Surplus amounting to over AZN 2.5 bln. developed in implementation of state budget of Azerbaijan
President Ilham Aliyev viewed work done as part of expanding Baku-Sumgayit highway
Armenian soldier killed in Nagorno Karabakh
Fourth season of La Casa de Papel dropped on Netflix
Australia closes internal borders to capitalise on fall in new coronavirus cases
Azerbaijani Army prevents Armenian provocation
Overall 443 people infected with the coronavirus in Azerbaijan, 32 recovered, 5 died
Peak of coronavirus cases expected in next few weeks, says UK Health Minister
Azerbaijan confirms 43 fresh cases of coronavirus
4.7-magnitude earthquake shakes eastern Turkey's Van
ADB: "COVID-19 pandemic's global cost may exceed $4T"
China advises foreign diplomats to stop coming to Beijing
Russia confirms 601 new coronavirus cases in 24 hours bringing total to 4,149
Coronavirus cases in India jump to 2301, death toll rises to 56
Cases of coronavirus reaches 736 in Armenia, 7 dead
Azerbaijan’s Energy Ministry: “OPEC and non-OPEC Ministerial Meeting to be held on April 6”
Azerbaijani MES recommends to follow requirements of personal hygiene regarding coronavirus danger - VIDEO
Azerbaijan Naval Forces conducted tactical exercises - VIDEO
Situation outside NYC hospital as coronavirus cases in US soar - Video
Slogan of President Ilham Aliyev “We are strong together” at the Flame Towers! - VIDEO
Azerbaijan commemorates Khojaly genocide - PHOTOSESSION
14 years pass since establishment of the Ministry of Emergency Situations: They always come to your aid in any difficult moments - PHOTOSESSION - VIDEO
First Vice-President Mehriban Aliyeva attended opening ceremony of rebuilt Azerbaijan pavilion at Exhibition of Achievements of National Economy in Moscow - UPDATED
Open Doors Day and the military oath-taking ceremony were held on the occasion of the State Flag Day
An exhibition that also presents President Ilham Aliyev's photo opened in Moscow
Starting March 31 citizens to be banned from leaving homes in Azerbaijan amid coronavirus threat
Azerbaijan confirms 41 new cases of coronavirus