HSBC Joins JPMorgan: Prepares To Unveil Up To 20,000 Job Cuts


HSBC Joins JPMorgan: Prepares To Unveil Up To 20,000 Job Cuts (ZeroHedge, June 1, 2015):

The banking system must be doing great… just days after JPMorgan announced mass layoffs, SkyNews reports that HSBC is preparing to announce a revised headcount target, which insiders said that it was likely to be between 10,000 and 20,000 job cuts.

As Sky News reports,

HSBC will next week set out plans to cut thousands more jobs across its global workforce as it tries to reassure shareholders that its focus on costs remains undiminished after a series of reputational crises.

Sky News understands that Stuart Gulliver, HSBC’s chief executive, will set out a revised target for headcount reductions that will be implemented by the end of 2017 at an investor day next week.

The precise job cuts number that will be outlined by Mr Gulliver on June 9 was unclear on Monday, although insiders said that it was likely to be between 10,000 and 20,000.

One source said the numbers were still being worked on and had yet to be finalised.

Europe’s biggest lender employed 258,000 people at the end of last year, but it has already abandoned a target set two years ago to reduce its employee base to between 240,000 and 250,000 by 2016 because of the fast-changing nature of bank regulation.

It is understood that the headcount reductions figure announced next week will exclude the potential impact of the sale of HSBC’s operations in Brazil and Turkey, where the bank does not disclose how many people work for it.

*  *  *

As we noted previously, of JPMorgan

The latest job cuts show that despite some resiliency in certain
business lines, including merger advisory and asset management

Banks have been
scrambling to cut costs enough to counteract increased regulatory and
legal expenses in recent years while revenue growth has been hurt by low
interest rates.

“It’s cheaper for us and good for clients,” Mr. Dimon noted.

Maybe so, but we’ll tell you who it’s most certainly not good for:
the people who are about to be fired. To those folks we say simply that
you can blame ZIRP, a flagging US economy which ZIRP has failed to prop
up, and of course, the machines.

But at least the stock price is up… so that’s nice!



4 thoughts on “HSBC Joins JPMorgan: Prepares To Unveil Up To 20,000 Job Cuts”

  1. Well, those of us who read and comment on this site know the banks are hollow shells of their former selves. Every loan they make from mortgages, auto loans, credit card loans……all get bundled into packages and sold on Wall Street. They take low level prospects, bundle them with enough A level prospects to get an A rating………..just as they did in the subprime mortgage debacle, that still goes on. Nothing was done to stop or fix any of it……

    The banks are empty, and when Wall Street finally hits the skids (what goes up must come down) regardless of the careful rigging by the inside greedy guts, the whole system will collapse. Nothing has been created by any bank, nation or industry but debt. Even Apple Computer, the darling of Wall Street, has $40 Billion out in bonds and has just informed the SEC they will be making another large issue………….If they are doing so damn well, why do they need to build more debt? The whole system stinks to high heaven…….

    Layoffs will continue around the western economy as it continues to contract, regardless of what the media or news outlets say about how great everything is……..


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