HSBC declares 35,000 job cuts as profits sink

HSBC has announced that it will cut 35,000 jobs over the next three years owning to a widespread renovation.

According to reports, the bank is targeting $4.5bn (£3.5bn) of cost cuts by 2022, while withholding $100bn (£70bn) of assets. The details of the spending cuts were revealed by Noel Quinn, the current serving interim chief executive.

Sources suggest the cutbacks were declared as profits for 2019, which fell by 33%, mainly because of HSBC’s investment and commercial banking operations in Europe.

The bank which employs more than 235,000 people, out of which more than 40,000 are based in the UK.   The company finds presence in more than 50 countries across North America, Europe, the Middle East and Asia. Asia accounts for around half of HSBC’s revenue and 90% profits.

Based on a statement by HSBC, the drop in profits was mainly because of $7.3bn in write-offs, owning to its global banking, markets and commercial banking business units in Europe.

Experts suggest the strategic overhaul has resulted mainly due to the slowing economic growth in HSBC’s major markets. Furthermore, the effect of coronavirus, Brexit and lower interest rates has added to the slump.