HSBC to speed up 35,000 job cuts after profits plunge
- Daniel Teo
- Topics: Asia-Pacific, Home Page - News, Job Cuts, News
HSBC has announced it will accelerate 35,000 job cuts after its profits plunged 65% in the first half of the year.
The economic effects of the COVID-19 pandemic coupled with the China-US political tension have taken a massive toll on Europe’s largest bank.
HSBC, which makes 90% of its profits in Asia, saw its profits for the first half of the year ending June 30 at US$4.3bn, down from US$12.4bn in the same period last year.
The bank initially paused plans for the job cuts when the COVID-19 pandemic first started, but the retrenchment exercise looks set to be accelerated now.
The group’s chief executive, Noel Quinn, said, “Our first-half performance was impacted by the COVID-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility.”
“Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC’s footprint.
“We will face any political challenges that arise with a focus on the long-term needs of our customers and the best interests of our investors,” he added.
