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HSBC to slash 35,000 jobs after profits fall

Credit: Reuters Studio
Published on February 18, 2020 - Duration: 01:21s

HSBC to slash 35,000 jobs after profits fall

HSBC said on Tuesday it would shed $100 billion in assets, slashing the size of its investment bank and revamping its U.S. and European businesses - in a drastic overhaul that will mean 35,000 jobs cut over three years.

Ryan Brooks reports.

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HSBC to slash 35,000 jobs after profits fall

HSBC is slashing 35,000 jobs globally over the next three years, part of a drastic overhaul unveiled by the bank on Tuesday (February 18).

It's the latest attempt to try to turn the bank around since the global financial crisis.

On Tuesday the bank said it's also cutting loose 100 billion dollars in assets, slashing the size of its investment bank, and cutting back business in the U.S. and Europe.

That downsizing announcement came with the news that 2019 was a very disappointing year.

Brokerages had estimated profit would clock in at over $20 billion.

But the bank says it took in far less - just $13 billion.

HSBC is Europe's biggest bank by assets but makes most of its revenue in Asia.

It's still looking for a permanent leader but interim CEO Noel Quinn is trying to convince the board he's the man for the job.

The last boss, John Flint, was ousted last year over concerns he could not stage the turnaround that chairman Mark Tucker is looking for.

Tuesday's plans to cut back - may be part of Quinn's audition.

The bank also says the coronavirus epidemic has significantly affected its staff and costumers.

And it warned that in the long run, the outbreak could eat away at the bank's revenue, and spawn bad loans as the virus- and efforts to stop it- disrupt the world's supply chains.

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