A huge cost-cutting exercise is planned at HSBC as reports suggest the bank is planning to axe 10,000 jobs worldwide.
This is in addition to the 4,700 redundancies announced in August when its chief executive John Flint unexpectedly quit after only 18 months in the role.
“We’ve known for years that we need to do something about our cost base, the largest component of which is people – now we are finally grasping the nettle,” an anonymous source told the Financial Times.
“There’s some very hard modelling going on. We are asking why we have so many people in Europe when we’ve got double-digit returns in parts of Asia.”
The cuts are expected in mainly high-paid roles and will be formally announced when HSBC announces its third quarter results on 28 October, according to one of two sources that spoke to the FT.
Brexit, trade wars and low interest rates are reported to be the causes for the cuts as HSBC joins Barclays, Deutsche Bank and Société Générale in announcing significant job cuts in recent months. JPMorgan Chase and Wells Fargo in the US have both forecast lower profits in response to weak global growth.
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