British banking group HSBC plans to eliminate 10,000 new jobs, the Financial Times reported Monday, two months after its ceo abruptly resigned and announced the cancellation of 4,000 jobs, amid the challenges of Brexit, trade war and Low interest.
The layoffs mainly involve high-paying jobs and are part of a new cost-cutting campaign led by new CEO Noel Kane. Kane succeeded John Flint, who resigned in early August.
An unnamed source told the newspaper: “We have known for years that we have to do something about our operating costs, a large part of which includes staff,” adding: “Very difficult models are currently being developed. We wonder why we have so many employees in Europe, when we have double-digit returns in some parts of Asia.”
The London-based group announced the sudden resignation of its chief executive, John Flint, in early August, just 18 months after he took office, without giving a specific reason for his decision.
At the same time, the group has revealed its intention to eliminate 4,000 jobs, mostly administrative jobs, as part of a new restructuring aimed at addressing global economic turmoil. Despite these steps, the group’s net profit in the first quarter increased by 18.6%, compared to a year earlier, to $8.5 billion.
The bank is scheduled to publish its third-quarter results in late October. Other major banks also plan to reduce their costs. JP Morgan and Wells Fargo have lowered their 2019 earnings forecasts for interest rates, while the world’s central banks are easing their monetary policies in response to weak expectations of global growth.