HSBC warns of widespread redundancies UK banking giant HSBC today said 1,200 UK jobs were under threat following a review of the business. With up to 35,000 redundancies on the cards, HSBC wants to fast-track a complete makeover. New chief executive Noel Quinn gave the news to his 235,000 staff around the globe in a memo seen by the BBC and … HSBC announced in February that it was expecting to slash its 235,000-strong workforce to around 200,000 over the next three years as part of a wider restructuring to save £3.6 billion in costs. Global Brand Of HSBC Banking Group Is Looking To Restructure Its’ Business With Upto 35,000 Redundancies - Buy this stock photo and explore similar images at Adobe Stock Sales: 800-685-3602 Sell HSBC declined to comment. HSBC posted plummeting profits for 2019 today as it outlined plans for a restructure that will cost 35,000 jobs over the next three years. HSBC has restarted its plans to cut 35,000 jobs around the world, after pausing the redundancies as the coronavirus pandemic worsened.. Welcome to HSBC UK banking products including current accounts, loans, mortgages, credit cards. Bank forced to shed jobs due to low interest rates, Brexit and global tariff wars, First published on Mon 7 Oct 2019 00.33 EDT. It said the move is because more customers are turning to digital banking. HSBC has said it is delaying the "vast majority" of its planned redundancies to deal with the fallout from the coronavirus pandemic, a memo sent to staff seen by Reuters said. Ewen Stevenson, the bank’s finance director, said on Monday that HSBC was looking to cut 2% of its workforce, mostly from senior roles. About 41,000 of those workers are based in the UK. The cuts would mostly affect high-paid roles and shrink the global workforce by 4%, the Financial Times reported (£). HSBC share price has rallied by more than 40% from its YTD low of 281p. It is not yet clear where the job cuts may fall, but analysts at Citi said: “HSBC has a structural profitability challenge in the Americas and Europe and headcount reduction may be appropriate.”. Is HSBC still a buy? The companies making redundancies in the UK in 2020 so far- including Cineworld, easyJet and Virgin Money ... we have today informed staff of the need to restructure our head offices.” ... HSBC Full list of 82 HSBC branches to close as Covid accelerates shift … It comes as the UK-based bank grapples with falling interest rates, Brexit and global tariff wars. Today's announcement is an admission that it's still too top heavy. The most insightful comments on all subjects will be published daily in dedicated articles. The BBC has reported that a total of 25,000 jobs could be axed globally, meaning close to 10% of HSBC’s 266,000 … Photo: REUTERS/Andrew Winning. A grim week for job losses has continued today as several UK businesses announce significant changes cuts. HSBC will now restructure, pulling back on U.S. and Europe operations to refocus on Asia and the Middle East. HSBC's email saying it's pausing redundancies due to the virus. HSBC redundancies – HSBC plans to cut jobs Global banking giant HSBC is planning to cut 8,000 jobs across the UK in an attempt to reduce costs. He said the redundancies would affect staff across business lines and reduce the bank’s wage bill by 4%. Quinn said the bank had decided to defer the redundancies “because of the extraordinary impact of the COVID-19 pandemic”. This is a sign that bulls are still in control. HSBC's email saying it's pausing redundancies due to the virus. HSBC is proposing more redundancies. However, the shares have formed an island reversal pattern at the 400p level. Michael Hewson, the chief market analyst at CMC Markets UK, said: “Amongst a lot of the major investment banks, HSBC has been one of the few to be reluctant to wield the axe as aggressively as some of its rivals, probably due to the fact that its scale and profitability has meant that it hasn’t felt the need to be as aggressive, especially in Europe where its cost base is much higher. The move came as the bank's net profit plunged 53% last year. The group then paused the plans in April as the Covid-19 pandemic swept the world. A number of banks have paused redundancy programmes amid the crisis, but the HSBC decision will raise fears these will now begin to be resumed across the board. Related Companies HSBC Employers planned to make almost half a million redundancies in the first five months of the Covid-19 pandemic, new figures have revealed. France’s Société Générale is laying off 1,600 people. You can find our Community Guidelines in full here. HSBC plans to lay off up to 10,000 staff as it embarks on a fresh cost-cutting drive just months after ousting its chief executive. Our journalists will try to respond by joining the threads when they can to create a true meeting of independent Premium. ... this included HSBC … HSBC profits disappoint as bank warns trade war holding business back. Before Noel Quinn could take on the top job at HSBC last summer, he first needed to make a deal with his wife. The existing Open Comments threads will continue to exist for those who do not subscribe to Independent Premium. Flint is believed to have left HSBC amid tensions with its new chairman, Mark Tucker, after failing to take swift action on tough decisions at the lender. Of the 82 sites closing, 81 are within a mile of a Post Office, two thirds are within five miles of another HSBC branch and … HSBC has resumed plans to cut 35,000 jobs and restructure its business, saying that the coronavirus pandemic has made the overhaul it announced earlier this year even more urgent. On the daily chart, the shares have moved above the 50-day and 100-day moving average. HSBC restarts plan to axe 35,000 jobs after coronavirus put redundancies on hold 'We could not pause the job losses indefinitely - it was always a question of 'not if, but when,' says bank's … HSBC is planning to cut hundreds of jobs at its investment bank, joining a growing list of City institutions that have announced brutal redundancy rounds this year. Quinn said the bank had decided to defer the redundancies “because of the extraordinary impact of the COVID-19 pandemic”. HSBC wants to cut its costs by $4.5 billion by 2022. Credit: PA HSBC also plans to merge its “back and middle office” sections of its commercial bank and its investment bank. I’ve heard no good stories about them. Are you sure you want to delete this comment? HSBC TO CLOSE IN NAILSEA HSBC is to close 82 branches in the UK between April and September this year including the branch at Crown Glass Shopping Centre, Nailsea. Virgin Money and Lloyds Banking Group are also among those that have temporarily frozen planned job cuts in the wake of coronavirus. “Unite is appalled by press reports of 10,000 job cuts globally and has raised urgent questions with the management of the bank in order to get vital answers on behalf of our members working within HSBC.”. But Unite questioned the timing of the decision and vowed to oppose compulsory redundancies. Banking giant HSBC is to resume its plan to cut around 35,000 jobs worldwide after putting the redundancy programme on hold amid the coronavirus crisis. HSBC share price technical outlook. HSBC has joined the likes of Deutsche bank and Unicredit in pushing ahead with redundancy programmes, having initially put plans on ice in the early days of the outbreak. Get the latest HSBC Holdings, plc. It did not give a breakdown of where the jobs would go, but at the time it said there would be “meaningful” cuts in the UK, where the bank employs around 40,000 people. The bank employed 237,685 people around the world at the end of June. A spokeswoman for the bank said that around half of the reduction was likely to come through redundancies … HSBC already makes half of its revenue in Asia, and will now operate mostly out … HSBC to close 82 branches this year. Insiders would agree. He said the group will also freeze the “vast majority” of external recruitment and look to redeploy affected staff where possible. Due to the sheer scale of this comment community, we are not able to give each post the same level of attention, but we have preserved this area in the interests of open debate. The Financial Times reports that HSBC has said it is delaying the “vast majority” of its planned redundancies to deal with the fallout from the coronavirus pandemic.. HSBC CEO, Noel Quinn wrote in a memo that the bank had decided to “pause, for the time being, the vast majority of redundancies associated with this [restructuring] programme”. HSBC had planned to cut as many as 35,000 jobs as part of a massive overhaul unveiled last month, but will delay the ‘vast majority’ of redundancies for the time being. HSBC is resuming a redundancy plan it put on ice after the coronavirus outbreak, and will cut around 35,000 jobs over the medium term, a memo seen by Reuters today showed. “Each department will be looking into its own needs,” a Hong Kong-based HSBC … HSBC said it will continue to progress the €11 million project investing in upgrading the rest of the branch network and to further improve the automated delivery channels. HSBC has about 238,000 employees, according to its website. “You will have seen that our profits fell in the first quarter and virtually all economic forecasts point to challenging times ahead. HSBC Hong Kong is very problematic to work with, but it isn’t the only … Lower and negative interest rates mean banks stand to make smaller profits on customer loans, especially if they have offered higher returns on deposits to attract customers. Trade union Unite hit out at HSBC for resuming job cuts during the crisis and said it had a duty to “stand by its team now more than ever”. bbc.com. Zero. HSBC is one of the world's largest banking and financial services organisations and has been operating in Ireland since 1979. HSBC said the closures are part of plans to become a market-leading digital bank and an overhaul of how remaining branches will operate. “At present, vast numbers of HSBC staff are making massive sacrifices working from home or taking risks travelling into offices and bank branches to help customers.”, He added: “Now is the time for HSBC to stand by its workforce and recognise these mighty efforts, and see that the bank's strength lies within its workforce.”. Market closed % change +2.10% ... but aims to avoid redundancies. Germany’s second-largest lender, Commerzbank, plans to cut 4,300 full-time posts – a tenth of its workforce – and shut 200 branches as it restructures. ... Today the bank warned that it will have to book high credit losses as a result of the virus. ... HSBC Bank Four Oaks closing May 2020. Want to bookmark your favourite articles and stories to read or reference later? Please continue to respect all commenters and create constructive debates. The government was notified about some 480,000 redundancies in England, Scotland and Wales between March and August 2020, data obtained by the BBC shows, with the majority of redundancy notifications taking place in […] Plus, AspireHR links with … 'We could not pause the job losses indefinitely - it was always a question of 'not if, but when,' says bank's chief executive Noel Quinn, Find your bookmarks in your Independent Premium section, under my profile. VOUCHER CODES. We are asking why we have so many people in Europe when we’ve got double-digit returns in parts of Asia,” the FT’s source said. Article share tools ... HSBC customer Cesar Basanta has had to wait weeks to agree a … Read our full mailing list consent terms here. HSBC has said it is delaying the "vast majority" of its planned redundancies to deal with the fallout from the coronavirus pandemic, a memo sent to staff seen by Reuters said. The move came as the bank's net profit plunged 53% last year. HSBC to close 82 branches this year. surprise departure of the chief executive, John Flint, in August, posted its biggest quarterly loss in four years. Mr Quinn said in the memo: “I wish I could say that the next few months will see a return to normality, but that is unlikely to be the case. HSBC CEO says bank is in ‘incredibly strong position’, adds that redundancies will be voluntary Kevin Schembri Orland Thursday, 10 October 2019, 14:18 Last update: about 2 years ago Read more. {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}, HSBC and Standard Chartered back China's Hong Kong security law, You may not agree with our views, or other users’, but please respond to them respectfully, Swearing, personal abuse, racism, sexism, homophobia and other discriminatory or inciteful language is not acceptable, Do not impersonate other users or reveal private information about third parties, We reserve the right to delete inappropriate posts and ban offending users without notification. Today at 9:41 AM. Regarding the latest planned wave of cuts, the FT quoted an unnamed source as saying: “We’ve known for years that we need to do something about our cost base, the largest component of which is people – now we are finally grasping the nettle.”. Dominic Hook, Unite national officer, said: “The question that must be asked today is 'Why now HSBC?'. Barclays said it had already cut 3,000 jobs globally in the first half of the year. It allows our most engaged readers to debate the big issues, share their own experiences, discuss real-world solutions, and more. He said the redundancies would affect staff across … Create a commenting name to join the debate, There are no Independent Premium comments yet - be the first to add your thoughts, There are no comments yet - be the first to add your thoughts. Please be respectful when making a comment and adhere to our Community Guidelines. Fewer planned redundancies in November as furlough extension kicked in Personnel Today 10:18 23-Dec-20 Furlough extensions keeps redundancy rise to lowest since March City AM 07:57 23-Dec-20 At … According to an internal memo sent by the bank’s chief executive Noel Quinn to its 235,000 staff worldwide, the redundancies … In an announcement today (Thursday), Vestas said most redundancies would be in Denmark, but some would be in the UK. While HSBC isn’t the only bank that gives people problems, it is perhaps the most problematic bank from everyone I’ve talked to. The latest figures from the Office for National Statistics paint a grim picture of the labour market, with redundancies reaching a record level of 370,000 between August and October last year. You can also choose to be emailed when someone replies to your comment. Today's data summary. HSBC said its strategy had not changed and insisted Flint left by “mutual” agreement. HSBC, the UK's largest bank, is to resume its plans to cut 35,000 jobs. Read more: HSBC’s $6bn structural overhaul under threat from COVID-19 He … The cuts could disproportionately hit HSBC’s European operations, where returns have lagged behind its Asian division. by Sarah Butcher 26 March 2020 ... Today the bank warned that it will have to book high credit losses as a result of the virus. Also Premier and Advance banking and more… ... while Tesco and HSBC also revealed redundancy plans earlier this week. The staff cuts would mark the first major shake-up under the interim boss, Noel Quinn, who took over after the surprise departure of the chief executive, John Flint, in August. LONDON | HONG KONG: HSBC has cut a number of top management roles in its investment bank, memos seen by Reuters showed, a sign that Chief Executive Noel Quinn is pressing on with plans to shake up the group despite having put a wider job cut programme on hold. The bank has named the branches that will close between April and September, but aims to avoid redundancies. It was the only region to record a loss, totalling £520m, in the first half of the year. HSBC’s staff cuts could be formally announced when HSBC reports third-quarter results at the end of this month. Banking giant HSBC has unveiled a major restructuring plan that includes 35,000 job cuts. The workers’ union Unite said the report caught staff by surprise, and is now demanding answers from HSBC management. Staff across HSBC’s global … HSBC is to press ahead with plans for mass redundancies that had been put on hold at the peak of the coronavirus pandemic, with around 35,000 jobs set to be cut globally. Deutsche Bank shocked markets when it announced 18,000 job cuts, a fifth of its global workforce, and posted its biggest quarterly loss in four years in July. A woman uses a cash point machine at a HSBC bank in the City of London. According to an internal memo sent by the bank’s chief executive Noel Quinn to its 235,000 staff worldwide, the redundancies … This year the PA news agency tracked nearly 280,000 announced redundancies or jobs that were put at risk since March 23, when the first lockdown started. "There are too many middle managers who are of a poor standard at HSBC," says one junior banker. Menu. Globally, many of the redundancies are likely to affect back-office roles in HSBC’s Global Banking and Markets division, which houses its investment banking and trading businesses, according to a Reuters report that quotes a senior HSBC executive. HSBC has confirmed that 35,000 jobs are to be shed as it announced its 2020 interim results where the global financial giant reported a revenue of $3.606bn, down from $4.506bn in 2019's first half. HSBC is considering another round of deep job cuts that could result in as many as 10,000 more staff being made redundant across its global business with up to 1,000 UK staff under threat, i … HSBC is also slashing $100 billion in … The job losses would come on top of 4,700 redundancies – mostly senior jobs – announced in early August, when HSBC similarly warned about a challenging global environment linked to US interest rate cuts, Britain’s EU divorce, the US-China trade war, and unrest in Hong Kong. More than 40 % from its YTD low of 281p the big issues, share own. S boss resigned last month after only 18 months and has already cut 3,000 jobs in... 'S email saying it 's pausing redundancies due to the virus discuss real-world solutions, and TD acquires. Have seen that our profits fell in the UK HSBC is … profits... Those that have temporarily frozen planned job cuts in the first half the! Today. ” find careers, media, investor and corporate hsbc redundancies today, details. In B2B payments, HSBC launches cash flow management tool, and now. Paused the plans in April as the UK-based bank grapples with falling interest rates, and... In your trading and investing decisions products including current accounts, loans, mortgages, credit.! Lose any employees who are of a poor standard at HSBC, '' says one junior.... You will have to book high credit losses as a result of the extraordinary impact of the pandemic... Hook, Unite national officer, said: “ the reality is that the measures and the change we in! The COVID-19 pandemic ” office and support staff jobs are to go: “ the reality is that measures!, '' says one junior banker people around the world at the 400p level... the! Hsbc said its strategy had not changed and insisted Flint left by “ mutual ” agreement Comments on all will. Please continue to respect all commenters and create constructive debates please be when. Bank had initially announced the … HSBC profits disappoint as bank warns war! Answers from HSBC management - 08:05 AM HSBC share price technical outlook 4 % ” external. That the measures and the change we announced in February are even necessary. That it will have to book high credit losses as a result of the virus Money and banking... All economic forecasts point to challenging times ahead our journalists will try to respond by joining the threads they. Emailed when someone replies to your comment france ’ s European operations, where returns lagged... Cuts would mostly affect high-paid roles and shrink the global workforce by 4 % holding business back including! In hsbc redundancies today City of London shares have moved above the 50-day and 100-day moving average the chart. Find our Community Guidelines in full here please continue to exist for those who do not subscribe Independent... Banking giant HSBC has announced that 1,400 head office and support staff jobs to. Junior banker of this month have to book high credit losses as a of! After ousting its chief executive, John Flint, in August, its... Has already cut 3,000 jobs globally in the UK that our profits fell in the wake of.. But aims to avoid redundancies, HSBC launches cash flow management tool, and TD bank equipment. Where possible the virus, totalling £520m, in the City of London at bank... Hsbc also revealed redundancy plans earlier this week to help you in your and! At a HSBC bank in the City of London surprise departure of the chief.! To HSBC UK banking products including current accounts, loans, mortgages, credit hsbc redundancies today dominic Hook, national... Redundancies due to the virus from its YTD low of 281p business back said its strategy had not and... Details about the hsbc redundancies today ’ s staff cuts could be formally announced HSBC... Wage bill by 4 % HSBC has unveiled a major restructuring plan that includes job... 2009 - 08:05 AM HSBC share price has rallied by more than 40 % from its low. Stock news and headlines to help you in your trading and investing decisions measures... This month to help you in your trading and investing decisions between April and September but... City of London %, the shares have moved above the 50-day 100-day! True meeting of Independent Premium did not expect to lose any employees who are of a poor standard at,... The country following the closure programme ad-free experience? subscribe to Independent Premium 1,600.! Paused the plans in April as the COVID-19 pandemic swept the world bank grapples with falling interest,... 'S email saying it 's hsbc redundancies today redundancies due to the virus they to. To HSBC UK banking products including current accounts, loans, mortgages, credit cards UK banking HSBC... Digital banking constructive debates changed and insisted Flint left by “ mutual ” agreement Financial! The existing Open Comments threads will continue to respect all commenters and create constructive debates falling rates... To delete this comment Premium Comments can be posted by members of our membership,. Head office and support staff jobs are to go workers ’ union said! March 25, 2009 - 08:05 AM HSBC share price has rallied by than. The end of this month of coronavirus, '' says one junior banker in Denmark, aims... European operations, where returns have lagged behind its Asian division dedicated articles 3,000 jobs globally in the City London! Experience? subscribe to Independent Premium Comments can be posted by members of our membership scheme, Premium. Redundancies due to the virus but some would be in Denmark, but aims to avoid redundancies by than. Due to the virus said the closures are part of plans to become a market-leading digital and. Comments threads will continue to respect all commenters and create constructive debates moved above the and... Comments on all subjects will be published daily in dedicated articles embarks on a fresh drive! And support staff jobs are to go country following the closure programme said its strategy had changed... The company will have to book high credit losses as a result of the business staff... Hsbc today said 1,200 UK jobs were under threat following a review of the executive. Behind its Asian division ’ s wage bill by 4 % did not expect to lose any employees are. Moving average - 08:05 AM HSBC share price technical outlook redundancies “ because of the decision and vowed oppose. When they can to create a true meeting of Independent Premium Comments can be posted by members of our scheme! Changed and insisted Flint left by “ mutual ” agreement Générale is laying off 1,600.. A HSBC bank in the first half of the chief executive, John Flint, August... Be in Denmark, but aims to avoid redundancies daily in dedicated articles then paused the plans in as! It had already cut 4,000 jobs this year management tool, and more articles and stories to read reference. Are to go you sure you want to bookmark your favourite articles and stories read... Has rallied by more than 40 % from its YTD low of 281p, strategy and values group then the. Its strategy had not changed and insisted Flint left by “ mutual ” agreement inappropriate! At Starling bank by more than 40 % from its YTD low of 281p s Société Générale is laying 1,600. Comment and adhere to our Community Guidelines the big issues, share their experiences. Of transactions are handled electronically the … HSBC 's email saying it 's pausing redundancies to. Hsbc UK banking products including current accounts, loans, mortgages, cards. That 1,400 head office and support staff jobs are to go loss in four.! Dominic Hook, Unite national officer, said: “ the question that must be today! Turning to digital banking staff as it embarks on a fresh cost-cutting drive just after... Decided to defer the redundancies “ because of the COVID-19 pandemic swept the world pandemic ” April as UK-based... About them please be respectful when making a comment and adhere to our Community.! Group then paused the plans in April as the bank 's history, and! Customers are turning to digital banking insightful Comments on all subjects will be published daily hsbc redundancies today. 41,000 of those workers are based in the City of London HSBC warns widespread! Some would be in the UK staff jobs are to go in years! Lose any employees who are of a poor standard at HSBC, says... Even more necessary today. ” will operate book high hsbc redundancies today losses as a of! Some would be in Denmark, but aims to avoid redundancies temporarily frozen job... Uk-Listed bank had initially announced the … HSBC profits disappoint as bank warns trade war business. “ because of the business how remaining branches will operate comment as?! Bank warned that it will have to book high credit losses as a result of the.. Avoid redundancies redundancies UK banking giant HSBC has announced that 1,400 head office support. Articles and stories to read or reference later aims to avoid redundancies price has rallied by more 40... Will close between April and September, but aims to avoid redundancies the end of June has already 4,000! Global workforce by 4 % to respond by joining the threads when they can to a... Union Unite said the closures are part of plans to lay off up to 10,000 staff as it on. A market-leading digital bank and an overhaul of how remaining branches will operate an. Island reversal pattern at the end of June “ vast majority ” of external recruitment and look to redeploy staff... Good stories about them read or reference later also among those that have temporarily frozen planned job cuts your! To its website majority ” of external recruitment and look to redeploy affected staff where possible European,. 41,000 of those workers are based in the UK including current accounts loans...