HSBC to lay off 10,000 'high-paid' employees in major cost-cutting drive: Report
New Delhi | Jagran Biz Desk: The London-based British multinational investment bank, HSBC Holding Plc is planning to cut 10,000 jobs as its interim Chief Executive Noel Quinn seeks to reduce costs, reported the Financial Times.
The plan is the lender's most ambitious attempt to rule its cost, a move that will reduce HSBC's staff to roughly 238,000. The job cuts were implemented under 'Project Oak' scheme that tried to encourage its executives and managers to reduce their team.
The report comes after the lender said it would layoff around 4000 employees earlier this year and issued a gloomier business outlook amid an escalation of a trade war between US and China, interest rate cuts, Brexit and unrest in Hong Kong following 'Anti-Extradition Law Amendment Bill' movement.
Earlier the bank announced Quinn as its interim in August after a surprise departure of John Flint citing it needed a change at the top of its business “a challenging global environment.”
Flint's exit came as a result of differences in opinion with chairman Mark Tucker over cutting expenses, as per a report by Reuters.
The latest cost-cutting drive focuses mainly on high paid employees as global banks slash jobs owing to low or negative interest leading to a global economic slowdown.
Earlier, Deutsche Bank said it would reduce 18,000 roles. The move by the German lender had also led to a layoff of employees working in its branches in India. Barclays and Citigroup have also announced job cuts this year.
As per reports, Mr. Quinn is working a plan with CFO Ewen Stevenson, who substantially lowered costs while serving the Royal Bank of Scotland.
HSBC could announce its latest move of cost-cutting after third-quarter results, the report claimed. The bank is yet to make its decision public.
The lender refused to comment.
Posted By: James Kuanal