Cost cutting: HSBC plans to slash 10,000 jobs; banking giants on lay off drive

New Delhi: HSBC is likely to give pink slips to at least 10,000 employees as part of its cost cutting drive. The decision has come shortly after its chief executive's resignation. In the first initiation, HSBC had laid off 4,000 posts.

The new chief Noel Quinn had announced layoffs recently, that had affected mostly high-paid roles.

The banking giant is suffering losses due to fall in interest rates, Brexit and trade wars.

"We've known for years that we need to do something about our cost base, the largest component of which is people - now we are finally grasping the nettle. There's some very hard modelling going on. We are asking why we have so many people in Europe when we've got double-digit returns in parts of Asia," Financial Times quoted an unnamed source as saying.

HSBC headquarters in London had announced resignation of CEO John Flint, just 18 months after he took charge in September. However, it did not specify any reason for the sudden action.

The banking giant also made an announcement that it will force 2% of its global workforce to go that added up to 4,000 employees in the management jobs.

Despite this development, HSBC had recorded a net profit of 18.6% in the first half of the year. It is said that the increase was a result of third-quarter earnings at the end of October.

Even other banks including JPMorgan Chase and Wells Fargo have lost on profits.

Reports also claim that Germany's second-largest lender Commerzbank said it plans to cut the equivalent of 4,300 full-time posts. This is  a tenth of its workforce. In addition, it will also close 200 branches before starting the restructure process.

Another banking titan Deutsche Bank has stated that it will lay off 18,000 employees. The list goes on as France's Societe Generale is all set to lay off 1,600 staff. 
 

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