HSBC PROFITS CRASH - MAJOR JOB CUTS IMMINENT



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ORIGINAL POST

Posted by Ed 18 days ago

Despite both the booming, record-setting stock market and economy, the mood on Wall Street for many is somber. Recently, we have covered the massive downsizing at Deutsche Bank and Citigroup—today, it's HSBC’s turn.

 
The large global bank announced that it will eliminate more than 4,000 jobs. The employees impacted by the layoffs will include a large percentage of executive-level professionals. Recently, two other European-based banks, Barclays and Societe Generale, have also announced job reductions.
 
Large international banks, such as HSBC, are confronting challenging economic headwinds, which could harm their core-lending revenue businesses. They are forced to deal with geopolitical uncertainty, the unknown negative consequences of Brexit, low and negative interest rates, tensions surrounding trade wars and tariffs and slowing growth in Europe.
 
Certain types of employees are deemed redundant due to the proliferation of automation and technology, which can do their jobs more economically and efficiently.
 
 https://www.forbes.com/sites/jackkelly/2019/08/05/hsbc-adds-to-the-gloom-on-wall-street-by-cutting-4000-jobs/#667783a7f9c8

COMMENTS

Ed 17 days ago
HSBC CEO Vows To "Remodel" Bank After Profits Plunge 24%
 
 

With its largest and most important market, Hong Kong, in chaos, it's hardly a surprise that HSBC, the nominally British lender which has its largest business footprint in Asia (particularly HK) reported a double-digit slump in pre-tax profits during Q3.

The bank said net profit slumped 24% YoY to $3 billion, falling far short of what analysts had anticipated, according to the FT.

 
Though Quinn is only interim CEO, it looks like the bank means business with this initiative: The FT reported earlier this month that the bank's plan to cut costs and divest businesses could lead to 10,000 job cuts. 
 
In a video presentation posted to HSBC's website, Quinn said "there are parts of our portfolio that are underperforming in terms of return. We need to urgently address that, move capital from those low-return portfolios and move it into the higher-return, higher-growth opportunities." 
 
 https://www.zerohedge.com/markets/hsbc-ceo-vows-remodel-bank-after-profits-plunge-24


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