Business

Report: HSBC to cut up to 10,000 jobs to trim costs

HONG KONG: HSBC is planning to lay off up to 10,000 workers, a report said yesterday, just weeks after announcing the resignation of its chief executive and the cutting of 4,000 posts citing a weak global outlook.

The latest losses, mostly in high-paid roles, are part of a fresh cost-cutting drive by interim boss Noel Quinn as the banking titan struggles to adjust to falling interest rates, Brexit and the long-running trade war, the Financial Times reported.

"We have 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," the paper quoted an unnamed source as saying.

"We are asking why we have so many people in Europe when we have double-digit returns in parts of Asia."

The bank last month announced the shock exit of CEO John Flint after 18 months in the hot seat.

At the same time, it revealed it would axe 2 per cent of its global workforce, or roughly 4,000 mostly management jobs, in a new restructuring.

Still, it reported that first-half net profit rose 18.6 per cent on-year to US$8.5 billion (S$12 billion).

When asked about the impact on HSBC's Singapore staff, its spokesman told The Straits Times the bank will not be commenting on the "speculation". Instead, he pointed to HSBC's recent appointment of banking veteran Philip Lee as its Singapore-based vice-chairman of global banking for South-east Asia - a newly created role. - AFP

BUSINESS & FINANCE