- Title: HSBC layoffs to hit Europe hardest but Hong Kong pain will follow, analyst says
- Date: 7th October 2019
- Summary: HONG KONG, CHINA (OCTOBER 7, 2019) (REUTERS) VARIOUS OF ANALYST, ALEX WONG, LOOKING AT FINANCIAL DATA ON HIS IPAD
- 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: LVA002B03IY4N
- 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.
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