- Title: HSBC layoffs to hit Europe hardest but Hong Kong pain will follow, analyst says
- Date: 7th October 2019
- Summary: (SOUNDBITE) (English) DIRECTOR, ASSET MANAGEMENT, LEVERAGE PARTNERS ABSOLUTE RETURN FUND, ALEX WONG, SAYING: "This time, actually, the cutting will be on the higher payroll people. I think that is probably because they are not producing that much, because like I said, the revenues would be actually very difficult. And I think they would like to maintain the sales force as well and the back office, actually, would be the first one to go already, so there are not much to go now. So that's why the higher-revenue side, higher-revenue people, are now on the knife." WONG SPEAKING (SOUNDBITE) (English) DIRECTOR, ASSET MANAGEMENT, LEVERAGE PARTNERS ABSOLUTE RETURN FUND, ALEX WONG, SAYING: "This may not be related too much to the situation in Hong Kong right now, because from the reports, they said the focus probably will be on Europe, because Europe are not performing well, so probably mainly, the axe will be on European business right now. So Hong Kong will be affecting the business later on, so I think in the meantime, they are just looking at the operations in Europe, because that is the side which is underperforming (in) the whole company."
- Embargoed: 21st October 2019 07:18
- Keywords: HSBC Hong Kong analyst Europe layoffs
- Location: HONG KONG, CHINA/ LONDON, ENGLAND, UK
- City: HONG KONG, CHINA/ LONDON, ENGLAND, UK
- Country: Hong Kong
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA003B03IY4N
- Aspect Ratio: 16:9
- Story Text: Massive layoffs at HSBC reflects falling revenues in Europe, but ongoing unrest in Hong Kong is also likely to be a factor in the future, a financial analyst in Hong Kong told Reuters on Monday (October 7).
HSBC Holdings is planning to cut up to 10,000 jobs as interim Chief Executive Officer Noel Quinn seeks to reduce costs across the banking group, the Financial Times reported on Sunday (October 6). HSBC could announce the beginning of the latest cost-cutting drive and job cuts when it reports third-quarter results later this month, the FT said, citing one person briefed on the matter.
"Probably, the axe will be on European business right now", said Alex Wong, Director, Asset Management, of Leverage Partners Absolute Return Fund in Hong Kong. He added that HSBC had already made significant cuts to its back office operations, and expected the latest layoffs to target high-income bankers.
"Hong Kong will be affecting the business later," he added.
The reported job cuts come after the lender said it would be laying off about 4,000 people this year, and issued a gloomier business outlook with an escalation of a trade war between China and the United States, an easing monetary policy cycle, unrest in its key Hong Kong market and Brexit.
(Production: Aleksander Solum, Yiming Woo)
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