Reported by: banking|Updated: June 19, 2020
HSBC has announced that it will reopen its previous plan for restructuring involving 35,000 jobs. The layoffs were originally planned to start February, but were put on hold because of the covid pandemic. The bank says in view of the current challenging business climate, coupled with falling profits, it has to act now to rein in costs. The bank will also impose a firm-wide hiring freeze. Noel Quinn, CEO of the bank, has sent a memo to some 235,000 employees stating the bank’s intention to effect the job cuts in view of the falling profits and the prevailing uncertain conditions. He added that the layoffs, which were first planned for February, are even more necessary today. The bank’s pre-tax profit plunged 48% to $3.2 billion in the first quarter and it had to set aside billions of dollars for potential losses associated with the pandemic. The bank, headquartered in Hong Kong, has also found itself in the midst of geopolitical upheaval, caught in between China’s new aggressive stance over Hong Kong.