HSBC Going Through Massive Restructuring Following Job Cuts And Relocation of Staffs Worldwide

HSBC Holdings PLC, the London based banking and financial services company has been planning for cutting senior investment banking positions. The plan aims to reduce costs across the entire company leading to loosing jobs for dozens of staff worldwide.

The Europe’s largest bank has been informing its staffs working at global banking and markets division in London on the job cut since last week. A fresh round of cuts is expected to take place this week affecting 10 more senior bankers of the unit. A spokesperson in HSBC has declined to make any comment in this regard, reports Reuters.

The job cuts appear to be a part of HSBC CEO Stuart Gulliver’s three-year planning for turning its global network around. The plan has been adopted a year back which includes shutting its money-losing businesses while cutting some 25,000 jobs.

The cost cutting measures have helped the British banking giant to off beat analysts’ predictions over first quarter profit. Gulliver is also confident in touching the expense targets within the year 2017, according to a report published in Bloomberg.

Meanwhile, HSBC has decided to appoint a new boss for its boardroom pay committee following announcement from the existing chair, Sam Laidlaw for stepping down. Sam has made the announcement during last week which will get effective as early as next year.

The banking giant has also been planning for relocating some 840 staffs around the world including India, China and Poland. Notably mentioning, HSBC has been forced to abandon a hiring and pay freeze following fierce protest from its staffs during January, reports City A.M.

The ongoing job cuts have also been analyzed as a signature act of Matthew Westerman, new co-chief of HSBC’s global banking unit. He has enlarged the global banking unit through merging with capital financing business unit since his joining to the bank from Goldman Sachs. Merging of the two units has caused duplicated and overlapping roles of numerous staffs that are now being eliminated to reduce expenses.     

HSBC is committed slashing one in every five employees in a bid to combat sluggish growth in all units of the banking giant. The adopted cost cutting measures also include reducing risk weighted assets in the investment banking and trading unit of the bank by up to one third. The British multinational financial and banking services company intends to reduce its expenses by $5 billion by 2017 to accelerate its growth.