Date
22 January 2017
HSBC is aiming to cut costs by up to US$5 billion a year and ensure a 10 percent return on equity by 2017. Photo: Bloomberg
HSBC is aiming to cut costs by up to US$5 billion a year and ensure a 10 percent return on equity by 2017. Photo: Bloomberg

HSBC spares Hong Kong jobs in sweeping revamp

HSBC Holdings Plc. (00005.HK) has no plans to cut any more jobs in Hong Kong.

It will maintain its Hong Kong headcount in line with its expansion plans in the Pearl River delta, the Hong Kong Economic Journal reported Wednesday, citing chief executive Stuart Gulliver.

On Tuesday, the British lender announced a sweeping downsizing that will result in the loss of 50,000 positions worldwide.

The revamp is intended to cut costs by up to US$5 billion a year and ensure a 10 percent return on equity by 2017, it said.

HSBC has already taken the ax to Hong Kong, wiping out 80 local jobs and closing its postal division while outsourcing some functions, the report said.

However, it is pressing ahead with its repositioning to Asia amid growing trade between China and ASEAN and in the Pearl River delta, Gulliver said.

Also, HSBC expects opportunities in China’s plan to create a pan-Asian economic corridor dubbed “One Belt One Road”, he said.   

Gulliver said the bank will strengthen its operations in the United States and Mexico given their high trade volume with China.

Turkey and Brazil are among the hardest hit in the global restructuring which includes divestment from some operations, automation and streamlining which will make half of its workforce in these countries redundant.

Brokerage group Macquarie said the measures could allow HSBC to maintain a progressive dividend policy but problems about profitability remain.

Translation by Vey Wong

[Chinese version中文版]

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