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HSBC to axe 35,000 jobs worldwide

19 February 2020 13:05

JAKARTA - HSBC Holdings plc is reportedly planning to axe 35,000 jobs globally due to a large scale business overhaul as the company recorded a 33% profit decline in 2019.

As quoted by CNN on Wednesday (19/2), HSBC's interim CEO Noel Quinn said that the restructuring is estimated to cost US$7.2 billion by 2022. "This represents one of the deepest restructuring and simplification programs in the bank's history," he said.

The job termination will take place over the next three years and affect 15% of HSBC's workforce due to its declining performance.

The bank will also reportedly shut down one-third of its US branches in order to shift its resources to the Middle East and Asia, which the bank regards as having more contribution to its profitability.

In addition, HSBC will also slash US$100 billion of assets by the end of 2022 in order to recoup its US$4.5 billion loss. In the US alone, the bank's profit before tax dropped from US$20 billion in 2018 to US$13.3 billion in 2019. (ARM/MS)

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