HSBC Delays Job Cuts to Cope with Virus
March 26 2020 - 12:21PM
Dow Jones News
HSBC Holdings PLC has delayed plans to cut thousands of jobs
because of the new coronavirus.
In a memo to staff Thursday, Chief Executive Noel Quinn said the
vast majority of job cuts will be paused, "because of the
extraordinary impact of the COVID-19 pandemic."
The bank, one of the world's largest by assets, set out plans in
February to eliminate around 35,000 jobs over three years through
cuts, attrition and asset sales. The plans are part of a broader
restructuring to improve returns by narrowing operations in the
U.S. and Europe and ending unprofitable client relationships.
In the memo, reviewed by the Wall Street Journal, Mr. Quinn said
those restructuring measures "remain crucial" but that job cuts
need to be delayed "to better support our people during the present
uncertainty." New hiring will also be frozen in most cases, he
said.
The bank will continue working on other aspects of the
restructuring, according to the memo, including combining back
offices in its wholesale businesses and establishing a "RWA
[risk-weighted assets] optimization unit" to shed capital-intensive
assets.
Write to Margot Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
March 26, 2020 12:06 ET (16:06 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Hsbc (LSE:HSBA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Hsbc (LSE:HSBA)
Historical Stock Chart
From Apr 2023 to Apr 2024