HSBC reiterates continuity in its business strategy, despite the recent CEO exit, underlining a potential axing of more than 4,700 jobs as part of its ongoing cost-cutting measures.
HSBC's finance director Ewen Stevenson noted that up to 2 percent of jobs (currently 237,865 employees globally), or 4,754, could be slashed as part of the overall group strategy to cut 4 percent of the bank’s wage costs. It anticipating cost savings from targeting senior roles, attrition, as well as $650 to $700 million in severance costs, saved moving forward, according to a «Wall Street Journal» report (paywall).
This is in addition to cuts announced in June 2018 by former CEO John Flint that covered areas such as digital banking and productivity improvement, which is expected to save an additional $0.5 to $2.5 billion from then to 2020.
More Moves to Come?
The new announcements follow the recent unexpected exit of former CEO Flint who was at the helm for a mere 18 months. Pundits are expecting even more strategic changes to come including a potential reduction to its global footprint.
HSBC Chairman Mark Tucker had then noted that the bank needed to respond to «an increasingly complex and challenging global environment» with a shift in leadership. «Circumstances change and we need to adapt,» he said.
