HSBC will reportedly reduce staff headcount and office space in Switzerland, following expectations of a poor 2021 showing for its private bank in the country.
HSBC is reducing its support staff headcount in Switzerland by 110 and surrendering two floors of its Quai des Bergues office in Geneva, according to a «Financial Times» report citing an internal memo.
«This will reduce our Geneva building cost by 20 percent for the coming years, representing a significant contribution to improving the profitability of the Swiss bank,» the memo said.
Job Relocation
According to unnamed sources in the report, many of the back and middle office roles are being moved to more cost-friendly locations such as outsourcing centers in Poland and Mumbai.
Meanwhile, front office roles are expected to remain unaffected with continued plans to hire more relationship managers and investment counselors in the coming years.
Flagged Underperformance
The bank’s «enhanced monitoring of direct costs» is due to expectations of $1 billion in net asset outflows from the private bank in Switzerland this year, the report added.
«We remain fully committed to Switzerland, an important private banking hub globally and a key market,» a spokesperson for HSBC said.
«The Swiss bank will expand its business with clients from Europe, the Middle East and Asia, build out its proposition for ultra-high net worth clients and continue to hire talent.»
