HSBC Ordered to Restart and Deepen Overhaul
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The economically crippling coronavirus pandemic has driven HSBC’s board to push the British lender not only to restart the original overhaul strategy but also further deepen cost cuts.
The ongoing health crisis has prompted the board to review the HSBC’s recent reorganization, according to a «Financial Times» report citing unnamed sources from the bank, and consider more drastic measures.
The bank has been undergoing restructuring changes while concurrently attempting to retain most jobs. After announcing its plan to cut 35,000 jobs, $4.5 billion in costs and $100 billion in risk-weighted assets, HSBC announced a pause most of the job cuts while proceeding with its original plan «wherever possible»
Intensified restructuring could potentially include more job cuts or a possible sale of its U.S. business, its retail network in France and operations in smaller non-strategic markets, the report added.
A spokesperson for HSBC declined to comment on the report.
HSBC has been continuously facing a stampede of challenges after finally confirming its permanent chief executive Noel Quinn in March this year. Since then, the London-headquartered bank has faced social unrest in Hong Kong, a temporary pause to its plans to cut 35,000 jobs, a dividend cancellation fiasco and now a greater overhaul driven by the pandemic.
Questions & Answers
Q.What is driving HSBC’s board to deepen its restructuring efforts?
What is driving HSBC’s board to deepen its restructuring efforts?
The economically crippling coronavirus pandemic is pushing HSBC’s board to not only restart its original overhaul strategy but also to implement deeper cost cuts. This ongoing health crisis has prompted a review of recent reorganisation plans.
Q.What new drastic measures might HSBC be considering as part of its intensified restructuring?
What new drastic measures might HSBC be considering as part of its intensified restructuring?
Intensified restructuring could potentially involve more job cuts than previously announced. The bank may also consider a possible sale of its U.S. Business, its retail network in France, and operations in smaller non-strategic markets.
Q.How did the initial plan to cut 35,000 jobs change after its announcement?
How did the initial plan to cut 35,000 jobs change after its announcement?
HSBC announced a pause to most of the job cuts after initially unveiling the plan. However, it stated that it would proceed with its original restructuring plan wherever possible, despite the temporary hold on job reductions.
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