HSBC has decided to drop its headcount by 50,000 which forms nearly 20 percent of its global workforce. This could in turn have some implications considering the consolidation of IT and back office operations.
HSBC has already a feather in its hat for being the largest multinational employer in the financial sectors with a storehouse of 32,000 jobs in India, out of the 2.62 lakh workforce, globally.
The countries facing the highest impact will be Brazil and Turkey, as the bank will be abandoning the operations which employ 25,000 of the workload. U.K is also set to facing the music by experiencing 8,000 jobs. Here they will be rebranding themselves to “ring fence domestic operations from international balance sheet to conserve capital” as quoted in The Times of India.
It’s not the first time that HSBC has announced this job cut. Earlier in 2011, the company had announce this verdict cutting down 30,000 jobs. The bank aims to cut costs by $4.5 billion to $5 billion by 2017-end.
“HSBC’s international network covers 90 per cent of global trade and capital flows, providing access to the world’s highest growth markets. HSBC’s client revenues linked to its international business contributed approximately 40% of the group’s client revenues for the year ended 31 December 2014,” said a statement issued by the bank.
The bank’s Chief Executive, Mr Stuart Gulliver is making a keen effort to turn around bank’s operations in U.S. and Mexico. He has also added operations will be eagerly grown in China’s Pearl River Delta and in South East Asia as well.
“HSBC has an unrivalled global position: Access to high growth markets; a diversified universal banking model with strong funding and a low risk profile; and strong internal capital generation with industry leading dividends. We recognise that the world has changed and we need to change with it,” Gulliver added.
Tags: HSBC
