HSBC to axe jobs in Europe, high-paying roles amid more cost cutting

Bank to still hire for ‘revenue-generating’ roles as it grows in Asia

Cuts on top of plan to eliminate less than 2 per cent of workforce, reduce wage costs by 4 per cent over the course of 2019

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An HSBC branch in Paris. The lender is considering the potential sale of its retail bank in France. Photo: Shutterstock

Published: 1:15pm, 7 Oct 2019Updated: 10:40pm, 7 Oct 2019

HSBC is engaging in another round of cost cutting, which will include job cuts primarily centred in Europe and higher-paid roles globally, as interim chief executive Noel Quinn looks to put his stamp on the bank, according to people familiar with the discussions.

The expense cutting is on top of previously announced plans to eliminate less than 2 per cent of the bank’s workforce and reduce the bank’s wage costs by 4 per cent over the course of 2019. As of June 30, the bank, which is based in London, but generates much of its revenue in Asia, had 237,685 full-time employees worldwide and had an additional 9,647 contractors.

The Financial Times reported on Monday that as many as 10,000 jobs could be eliminated as part of the latest round of cutbacks by the bank, which shrunk its global footprint after the financial crisis and pivoted to Asia.

The latest cost cuts do not represent a shift in strategy and Asia is still viewed as a growth engine by HSBC’s top management, said a person familiar with the bank’s plan, but not authorised to discuss the matter publicly. As a result, HSBC would continue to hire “revenue-generating” employees in areas it plans to increase its presence in Asia, the person said.

HSBC declined to comment.

Asia accounted for 55 per cent of the company’s employees last year and nearly 80 per cent of HSBC’s US$12.5 billion in adjusted profit before tax in the first half of this year.