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HSBC might axe up to 20,000 jobs globally

HSBC plans to cut down around 10,000 to 20,000 jobs globally that will be announced next week as a part of the bank’s overhaul strategy.

hsbc

The exact number of jobs to be axed have not been finalised yet, reported Sky News.

HSBC chief executive Stuart Gulliver will make the announcement at an investor presentation on 9 June.

The move comes after Gulliver recently said that its businesses in Turkey, Brazil, Mexico and the US should either be brought back to firmer footing or be sold.

However, it is being speculated that the job cuts will not affect the potential impact of the sale of the bank’s operations in Brazil and Turkey.

Sky News also adds that the new job cuts will not consider the possible eventual separation of HSBC’s UK arm.

Gulliver spoke about the possibility of the bank’s separation in view of a requirement for big UK lenders to create separate ring-fenced entities by 2019.

The bank has been adversely affected due to low interest rates and tighter regulations that have forced Gulliver to sell or exit an estimated 77 business units in the last four years after joining.

Gulliver is also expected to announce his plans for the future of loss-making Turkey business on 9 June. According to Reuters, ING Group, BNP Paribas and the Bahrain-based Arab Banking have submitted bids for acquiring the Turkish business unit.

The bank has had its fair share of trouble as it has been facing substantial penalties from US authorities for attempting to manipulate foreign exchange markets.

A number of probes are also being carried out regarding the Swiss tax evasion scandal that was exposed earlier this year.


Image: HSBC has been affected by low interest rates and strict regulations. Photo: courtesy of Danesman1.