Bank of East Asia announces 180 layoffs in Hong Kong

The Bank of East Asia (BEA) has confirmed firing 180 people, or 3.8% of the local workforce, according to reports from eweekly.

The bank explained that the move was made in order to deploy resources more efficiently.

It will close all of its 22 East Asia Securities retail outlets in Hong Kong by July 8 2016, as more than 90% of securities transactions had moved on line.  The securities arm will continue to provide telephone and internet banking services to customers.

Affected staff were informed they had been made redundant.  The asset financing and mandatory provident fund (MPF) departments are hit the hardest, MPF has cut 14 jobs with more people expected to be let go.

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After the cut, the bank now hires just under 5000 people locally and has more than 13,000 headcount globally.

The bank saw a 17% year on drop on revenue, which is believed to be the trigger for job cuts.

The last job cut at BEA came in 2002, with 200 people losing their jobs.

The bank suffered a 99% drop in revenue in 2008 but chairman David Li Kwok Po had pledged not to cut jobs.

Image: 123RF