HSBC set to axe senior managers in strategy shift
HSBC is reportedly set to unveil a strategy overhaul which will see a new round of job cuts targeting senior managers and reduce its presence in some smaller markets.
Reuters reported that the changes are expected to be part of a strategy update by interim chief executive Noel Quinn on 18 February.
The restructuring is an attempt to boost the profitability of the bank amid slowing economic growth, an outbreak of the coronavirus, Britain’s withdrawal from the Eu and lower interest rates.
It is unclear how many jobs will be cut but Reuters said the move would mainly hit operations in London and to a lesser extent in Asia.
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“More than cost-cutting, the idea is to make the structure at the top a bit leaner and give more decision-making powers to the regional managers who are closer to the clients,” said one of Reuters sources.
Quinn was appointed interim boss last August after the surprise departure of his predecessor John Flint and is tipped to get the chief executive role full-time.
He is likely to unveil plans to boost the bank’s profit outside Asia while reiterating HSBC’s commitment to invest more in China.
It is reported that the bank is considering pulling out of Turkey and reducing its business in other markets such as Armenia, Greece and Oman where it is struggling to compete with rivals.
Last October, the bank posted a 19 per cent drop in third-quarter profit, a performance that Quinn branded as “not acceptable”. HSBC is set to announce its full-year results this month.
Analysts expect HSBC to report pre-tax profit for 2019 of about $20bn (£15.43), in line with the $19.9bn (£15.35) profit in 2018.
HSBC has today announced the appointment of Stephen Moss as regional chief executive for EMEA and Nuno Matos as chief executive of Europe, replacing James Emmett who will leave the bank in September.
HSBC were contacted for comment.