HSBC to hit ‘pause’ on its retrenchment plan and will freeze hiring as coronavirus pandemic shows no sign of slowing

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

The London-based lender said it would freeze hiring except for a ‘small number of front-line and business-critical roles’

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A man in a protective mask walks past an HSBC branch in Central district, Hong Kong. Photo: EPA

Published: 10:27pm, 26 Mar 2020Updated: 11:23pm, 26 Mar 2020

HSBC plans to delay thousands of job cuts planned as part of a massive restructuring announced in February because of the “extraordinary impact” of the coronavirus pandemic that has probably sent the global economy into a recession, according to an internal announcement.

The bank, one of three lenders authorised to issue currency in Hong Kong, told staff on Thursday it would “pause, for the time being, the vast majority of redundancies” that would have seen as many as 35,000 jobs being eliminated as part of an overhaul designed to reduce annual costs by US$4.5 billion, according to the memorandum seen by the South China Morning Post.

HSBC, which is based in London but generates most its revenue in Asia, also said it would freeze hiring except for a “small number of frontline and business-critical roles and those already with written offers.” A spokeswoman at HSBC confirmed the content of the memorandum.

“The measures we announced in February to transform the bank remain crucial,” HSBC’s chief executive Noel Quinn said in the internal announcement. “The decisions we are announcing today enable us to better support our people during the present uncertainty, while remaining focused on our ambition to transform the bank.”

Quinn, who took over from John Flint as interim CEO in August, was appointed to the top job permanently last week. The announcement comes just over a month after Quinn announced the third major overhaul for the lender in a decade.

HSBC to hit ‘pause’ on its retrenchment plan and will freeze hiring as coronavirus pandemic shows no sign of slowing

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 The London-based lender said it would freeze hiring except for a ‘small number of front-line and business-critical roles’

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

The London-based lender said it would freeze hiring except for a ‘small number of front-line and business-critical roles’