HSBC is expected to cut more jobs next week in order to show shareholders it’s focus remains on cost after several reputation crises. Chief executive, Stuart Gulliver, is expected to cut between 10,000 and 20.000 jobs on June 9th as he makes a revised target for the number employees.
HSBC had a total of 258,000 employees at the end of last year but this number is quickly falling because changing bank regulations.
In additional to these job cuts, there are several other sections of the bank that won’t be accounted for when the number is released next week.
HSBC hired Goldman Sachs to find a buyer for its Brazilian business, which is said to be worth billions of dollars. Several more jobs may be lost when this business is sold which are not counted in the official number.
Gulliver has also stated there may be a separation of the UK arm in the future. The change in personal, if this happens, will also not be counted for.
The headquarters may be changing locations in the near future, which is causing anxiety among shareholders. Hong Kong is thought to be the most likely place for relocation by experts. The possible relocation will also be announced next week when the job cuts are.
Some experts argue that the George Osborne’s Bank Levee has discouraged investing in HSBC because it has stopped Gulliver’s ability to grow dividend. This may be one of the reasons for the thousands of job cuts.
Since his takeover in 2011, Gulliver has been praised by investors for his strategy of simplifying HSBC’s structure. He has sold lots of businesses and taken on thousands of new staff members up until recently. Unfortunately it hasn’t all been good for Gulliver. He has faced fines for misconducts and penalties for trying to manipulate foreign exchange markets.
HSBC has not yet commented on the expected job cuts.