HSBC will cut 35,000 jobs as part of massive restructuring

The investment bank announced its net profits fell by 54% in 2019.
Posted at 4:53 PM, Feb 18, 2020
and last updated 2020-03-02 11:54:25-05

International investment bank HSBC announced Tuesday it plans to undergo a massive restructuring that will result in it slashing approximately 35,000 jobs over the next few years.

The U.K.-based bank revealed Tuesday that its net profits fell by 53% to approximately $6 billion in 2019.

HSBC currently employs more than 235,000 full-time staff members globally. As part of the restructuring, that figure is expected to fall to 200,000 by 2022, a company spokesman confirmed to ABC News.

The company also said it plans to cut $100 billion in assets and reduce its U.S. branch network by approximately 30%. HSBC currently has assets of approximately $2.7 trillion.

Noel Quinn, the group chief executive, called its 2019 performance "resilient" but added that "parts of our business are not delivering acceptable returns" in a statement Tuesday.

"We are therefore outlining a revised plan to increase returns for investors, create the capacity for future investment, and build a platform for sustainable growth," he added. "We have already begun to implement this plan, which my management team and I are committed to executing at pace."

The bank "continues to face major challenges" due to its close ties with mainland China, Hong Kong and the U.K., Mark E. Tucker, the group chairman, wrote in a statement in its annual report.

Tucker cited the coronavirus outbreak in China, social unrest in Hong Kong and Brexit in the U.K. as specific business challenges the bank had to overcome over the past year.

"The macroeconomic environment as a whole remains uncertain," he added. "As a result of the impact of the coronavirus outbreak, we have lowered our expectations for growth in the Asian economy in 2020."