HSBC to establish new company, denies outsourcing jobs

After cutting jobs and slashing pay and bonuses earlier in the year, HSBC announced another restructuring yesterday.

According to The Standard, the bank is going to establish a new company and plans to transfer staff from its global, operation, services and technology departments in Hong Kong to the new company.

The transfer is expected to take place during the first half of next year. The number of staff members included in the transfer is unknown. The bank stressed that it is not a move to outsource or cut jobs.

The bank pledged there will be no changes to salaries, benefits and job descriptions of those affected by the move.

In an internal memo seen by The Standard, the bank explained the new structure is designed to meet the requirements of regulatory bodies towards big banks.

The memo also mentioned the new structure will work to ensure the company's banking business will remain in operation even if one of its operations faces financial problems, although it is highly unlikely such circumstances will occur.

Human Resources magazine has reached out to HSBC for comment.

ALSO READ: HSBC Malaysia allegedly forcing lower-income workers to leave

Photo/ 123RF