Singapore escapes HSBC axe

As 10,000 jobs are cut across the banking group, the Lion City looks to set to survive unscathed in the latest round of downsizing.
By: | October 7, 2019
Topics: Asia-Pacific | News | Restructuring | Singapore

HSBC is planning to cut up to 10,000 jobs to reduce costs across the banking group, and has highly-paid executives in its sights.

Although headquartered in the UK, HSBC generates more than 80% of its profits from Asia. Singapore has been singled out as one of eight strategic markets for HSBC and looks set to escape this latest round of cutbacks.

HSBC, like most global banks, has been scaling back operations in light of weaker-than-expected economic growth and the ongoing trade war between China and the U.S. Recent organisations announcing job cuts include Deutsche Bank and Barclays.

HSBC currently has around 235,000 employees across the globe, according to its latest annual report. This fresh round of cutbacks represents about 4%of its workforce, who are casualties in its new restructuring exercise.

The job cuts will “target more senior ranks”, according to Chief Financial Officer Ewen Stevenson. He said HSBC will pay out up to US$700 million in severance costs.