The Hong Kong and Shanghai Banking Corporation (HSBC) allegedly fired more than 40 employees in the Hong Kong branch this Tuesday and Wednesday. The majority of the cuts comes from the retail banking and private banking departments, and the IT department of the insurance segment.
Earlier in June, as threats of the pandemic ease, the group announced reviving its layoff plan of slashing 35000 jobs in an effort to save about US$4.5billion (HK$34.9bn) by 2022. HSBC said that the job cuts are likely in the back office at global banking and markets (GBM) and senior bankers in the UK who work in GBM and HSBC’s head office, and support staff in its businesses around the world. Less profitable areas of business, in particular, units in Europe and the US, will be scrutinised.
Also read: HSBC resumes plan to axe 35,000 jobs
Conversely, the group expressed its interest in accelerating investments in Asia as the Asian market is its leading source of its earnings. Hong Kong, for instance, recorded a profit before tax of US$5.092 billion, higher than the combined global sum of US$4.32 billion,
It comes as a surprise that the Hong Kong branch echoes the layoff calls made by the group,
A spokesperson for the HSBC had not made any comment on this.
When the Hong Kong government announced its HK$80 billion Employment Support Scheme (ESS), the banking giant made it clear that it would not apply to the scheme.