Less than two weeks after being named the permanent chief executive, Noel Quinn’s path to executing the group strategy is already being derailed.
The ongoing pandemic that will cause the bank to delay its 35,000 job cuts as part of a broader overhaul to reduce annual cost by $4.5 billion.
«Because of the extraordinary impact of the COVID-19 pandemic, we have decided to pause, for the time being, the vast majority of redundancies associated with this [program] where notices have not already been issued,» said Quinn in an internal memo.
In addition to pausing job cuts, the note, which was confirmed by a spokesperson, also said the bank would freeze hiring with the exception of a handful of roles including «a small number of front-line and business-critical roles and those already with written offers».
35,000 Job Cuts in a Pandemic?
As reported by finews.asia, any attempts to ax large numbers of jobs in the current environment will prove not only operationally difficult but also bear social costs especially as governments rush to up fiscal spending to prop the economy and support low-income earners.
«The measures we announced in February to transform the bank remain crucial,» Quinn added. «The decisions we are announcing today enable us to better support our people during the present uncertainty, while remaining focused on our ambition to transform the bank.»
Elsewhere, banks are in fact joining governments in the economic battle to combat coronavirus headwinds. The most notable reported efforts include American financial giants such as Citigroup, JPMorgan Chase and Bank of America which have offered to provide early payments and one-time payouts of up to $1,000 targeting workers at the frontline in branches, call centers and other operation centers.
