HSBC to cut 35,000 jobs amid 33 per cent profit drop

A UK bank has today announced a significant restructuring which will include the loss of 35,000 jobs.

HSBC, which operates in more than 50 countries worldwide, employs more than 40,000 people in the UK, and 235,000 overall.

The company reported loss before tax of $3.9bn in the fourth quarter of 2019, and profits for the year fell 33 per cent against last year.

It said the drop was due to a ‘goodwill impairment’ of $7.3bn and a $1bn UK bank levy charge.

The bank, which earns 90 per cent of its profit in China, said that its performance in 2020 could be further impacted by the coronavirus outbreak, which it is “continu[ing] to monitor”.

Noel Quinn, interim chief executive, commented: “The group’s 2019 performance was resilient, however parts of our business are not delivering acceptable returns.

“We are therefore outlining a revised plan to increase returns for investors, create the capacity for future investment, and build a platform for sustainable growth.

“We have already begun to implement this plan, which my management team and I are committed to executing at pace.”

Speaking to Reuters, he confirmed: “The totality of this program is that our headcount is likely to go from 235,000 to closer to 200,000 over the next three years.”