But most apartment buildings are not allowing staff, even if you have room for them. Its U.S. bank branch network was targeted for a 30% reduction. “Virtually all” Citi’s traders are off the floors. In America, over 40 million people applied for unemployment benefits since mid-March. It has unexpectedly parted ways with its CEO John Flint in August, less than two years after his appointment. All the people mentioned in the memo have had long and successful careers and will probably do better by leaving now, on sabbatical or otherwise, than hanging around until the bank feels able to make an official announcement. And there are few things more frustrating for a senior manager in any industry, let alone one based on personal franchises and relationships, than being stuck in a post where you can’t make long term plans. Layoff Date: August 31, 2020. Crew, filed for bankruptcy protection. This came after the Hong Kong branch reportedly laid off more than 40 staff in September. HSBC layoffs: 3 reasons why the banking giant is imploded Plummeting profits, unstable markets, and Brexit are just a few of the factors that have precipitated the downward spiral at HSBC… This time though, it faces a double hit to its future. Whatsapp/Signal/Telegram also available. It was the highest number of staff cuts … While junior bankers and middle and back office staff might struggle if their jobs are cut in the middle of a pandemic, senior bankers with long years of earning six figures should be shielded by a cushion of assets. Feb. 18, 2020 4:04 AM ET HSBC Holdings plc (HSBC) By: Yoel Minkoff, SA News Editor 43 Comments. Whatsapp/Signal/Telegram also available. (Business Insider), Jack Allard, the Bank of America analyst who was one of the first investment bankers in New York to get seriously ill with coronavirus, is out of hospital (ABC7NY), Have a confidential story, tip, or comment you’d like to share? HSBC quietly held rounds of layoffs. (, Citi, on the other hand, has warned its staff that its decisions may end up being more cautious than local governments in some countries and regions. HSBC is also slashing $100 billion in assets and closing many branches. This has been very profitable; however, the bank found itself in the midst of geopolitical maelstrom, caught in between China’s new aggressive stance over Hong Kong. The cuts were always expected following CEO Noel Quinn's pronouncement that “regional heads will roll” in the Global Banking and Markets (GB&M) business line. HSBC, which today announced its second quarter results, the ousting of its chief executive and 4,000 layoffs in the months to come, seems to have fallen foul of the shrinking revenue and profit disease. HSBC has deep roots in Hong Kong, dating back to 1865. Many banks seemed to reason that in a people business, delaying cuts for a few months might be cheap at the price for preserving team spirit, while saving money on headcount could be extremely expensive if people turned out to have long memories for who did the wrong thing. HSBC had confronted a number of issues, including falling interest rates that make it hard for banks to be profitable, unrelenting protests in Hong Kong, uncertainty surrounding the outbreak of the coronavirus, concerns about the effects of Brexit and other geopolitical and economic events. Separately, it might be argued that bankers at all levels have it easy right now. HSBC is preparing to lay off dozens of staff in its global banking and markets business, a source with direct knowledge of the matter told Reuters on Tuesday. Citigroup dropped the ax on hundreds of trading-related professionals. The economic fallout also created a huge amount of uncertainty, making stars of previously challenged business lines and creating big losses in what had been thought to be focus areas. Contact: sbutcher@efinancialcareers.com in the first instance. Jamie Dimon's controversial compensation, How to resign from your banking job without burning your bridges, Ex-bankers poised to make fortunes at Deliveroo as more quit for start-ups. HSBC is looking to … HSBC to cut around 100 jobs in UK retail bank . As, It might turn out, though, that this logic doesn’t apply all the way up the org chart. Updated . Surely the biggest worry would be that to refuse to take the cut would be to paint a target on oneself for the redundancies when they came? HSBC US wants to leverage upgraded identity verification and onboarding technology — central to its new digital account opening functionality — to grow its mass-affluent consumer checking account product, reports Bank Innovation. If this was enacted, it's reasonable to believe that jobs could be saved. Perhaps these people regarded themselves as irreplaceable, or alternatively that they were bound to be fired anyway. LONDON – British labor union Unite has expressed dismay over reports that the bank HSBC will slash 10,000 jobs worldwide. He said the “natural attrition” of staff was around 25,000 each year and promised HSBC would manage layoffs in a “sensitive and appropriate manner”. Phil Falcone, hedge fund star of a few years ago, borrowed money secured against his art collection (and his houses), and then things started to go badly wrong… (, Did you know there was a surprisingly successful version of Club Penguin for hedge fund founders and billionaires? Please try again. © 2021 Forbes Media LLC. A turbulent period for HSBC. Major HSBC Layoffs: 35,000 Job Cuts and Massive Restructuring Announced Banking giant HSBC has unveiled a major restructuring plan that includes 35,000 job cuts. HSBC will also enact a firm-wide hiring freeze. As in the film “Red” (and, somewhat more tastelessly, “The Expendables”), the old-timers are being brought back for essential missions. Deutsche Bank planned to downsize 18,000 employees. In professional services firms, people are being asked to take one for the team, and to agree to pay cuts, particularly at senior levels, in order to preserve cash flow and avoid compulsory redundancies. Another question raised by some is why HSBC reported that it will maintain its dividend payments to shareholders. The bank could save a fair amount of money if dividends were cut or a moratorium was placed on the payouts. HSBC was not alone in this endeavor. I am a CEO, founder, and executive recruiter at one of the oldest and largest global search firms in my area of expertise, and have personally placed thousands of. We could not pause the job losses indefinitely. The layoffs, which could be announced with third-quarter results on Oct. 28, are part of broader restructuring efforts. As banks raise their heads above the parapets and make the cuts that are surely coming, it's these most senior people who they will feel most comfortable letting go. HSBC JOB CUTS Saving 'The City': London's finance district plots reboot as COVID compounds Brexit The City, as London's financial district is known, has survived the Great Fire, the Black Death and other upheavals down the centuries. The chief executive said, "Everyone who leaves will be offered support on searching and applying for jobs and preparing for interview.". HSBC’s boss resigned last month after only 18 months and has already cut 4,000 jobs this year. So many of the elite, presumably including the top of the Manhattan hedge fund and investment banking worlds, are cleaning their own houses for the first time in a while. In a cost-cutting, belt-tightening initiative, HSBC, a top-tier, global bank, plans to downsize about 10,000 employees, according to the Financial Times. Contact: in the first instance. This leaves us wanting to know more about those 50 people. The British bank has been laying off senior people in a bid to cut costs. (New York Post), JP Morgan is announcing a plan – but no firm timeline as yet – to bring its employees back into the office, based on guidance from governments and health authorities. Laid Off Employees: Laid Off Percent: 15%. ), Get the latest career advice and insight from eFinancialCareers straight to your inbox, Please click the verification link in your email to activate your newsletter subscription. Some of the top brass will be moving to other jobs in asset disposal units and the like, but Andre Cronje is leaving the bank, Gordon French will take a “six month sabbatical” and Andre Brandao “will stay on until the end of the year until a further announcement is made”. HSBC's move seems to suggest that moral and reputational considerations were more important than operational ones. My career advice will cover everything you need to know, including helping you decide if you really should seek out a new opportunity, whether you are leaving for the wrong reasons, proven successful interviewing techniques, negotiating a salary and accepting an offer and a real-world understanding of how the hiring process actually works. The biggest reorganization in HSBC ’s history could get even larger as more cuts are requested by the board following the economic fallout from the … Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Its pre-tax profit plunged 48% to $3.2 billion in the first quarter and it had to set aside billions of dollars for potential losses associated with the Covid-19 pandemic. There were a number of reasons for this. HSBC Holdings Plc confirmed its plans to eliminate jobs, axing more than 4,000 posts and warning that senior executives will be a focus of the cutbacks. HSBC, the behemoth international bank, announced it will reignite its prior plan for a massive 35,000 job cut. The people who say “no” to a firmwide salary reduction by Daniel Davies 22 April 2020 Early on in the coronavirus crisis, most of the big investment banks announced that their cost cutting and redundancy programs would be … HSBC. For one thing, the virus presented a whole new set of operational challenges, meaning that people who might have been identified as “excess overhead” were actually needed to help handle the chaos. The rapid decline in profits—about $7.3 billion—was attributed to write-offs related to HSBC’s investment and commercial banking divisions in Europe. stars of previously challenged business lines, is moving ahead on quite a few of its top-level cuts, Trepidation grows as Nomura's bonuses loom into view, Morning Coffee: Bank that paused layoffs for the pandemic revs them up again. (, JP Morgan is announcing a plan – but no firm timeline as yet – to bring its employees back into the office, based on guidance from governments and health authorities. KEY POINTS. Internally, it will therefore have been clear for sometime what was coming. These job reductions all occurred pre-Covid-19. “Virtually all” Citi’s traders are off the floors. I am a CEO, founder, and executive recruiter at one of the oldest and largest global search firms in my area of expertise, and have personally placed thousands of professionals with top-tier companies over the last 20-plus years. A number of top-tier global banks, such as Morgan Stanley, had been pruning staff with downsizings—serving as a hedge against a possible downturn in the economy. However, according to memos seen by Reuters and confirmed by the company, it's is moving ahead on quite a few of its top-level cuts, some of which we were first to report last week. HSBC Layoffs 2019: 10,000 Lose Jobs In Cost-Cutting Effort Banking giant HSBC is reportedly planning to chop 10,000 jobs. So many of the elite, presumably including the top of the Manhattan hedge fund and investment banking worlds, are cleaning their own houses for the first time in a while. Business News. There must be some interesting stories, although possibly not ones that anyone will be hugely keen to tell. (, Possibly unsurprisingly given the performance of the investment bank that Edward Bramson wanted to get rid of, institutional shareholders are lining up behind Jes Staley and against the activist investor (, “There’s a whole sequence of events here that, quite frankly, was really unfortunate for me personally”. HSBC's stock price has fallen more than 20% since Flint stepped in as CEO in February 2018. (Bloomberg), Possibly unsurprisingly given the performance of the investment bank that Edward Bramson wanted to get rid of, institutional shareholders are lining up behind Jes Staley and against the activist investor (Financial News), “There’s a whole sequence of events here that, quite frankly, was really unfortunate for me personally”. While HSBC warned earlier this year that profits would be hit by a slowdown in China, the broader region was profitable for the bank in the third quarter. 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