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HSBC CEO leaving amid 4,000 job cuts

Lianna Brinded
Head of Yahoo Finance UK
Outgoing HSBC CEO John Flint pictured with former UK Chancellor of the Exchequer Philip Hammond (R). Photo: STEFAN ROUSSEAU/AFP/Getty Images

John Flint, CEO of HSBC (HSBA.L), has stepped down at the bank after 30 years at the major bank and amid reports that the group is cutting over 4,000 jobs.

On the day the bank unveiled its interim results, HSBC said in a statement that Flint would be leaving the lender "by mutual agreement with the board." While Flint has a 12 month notice period, he will stop his day-to-day responsibilities at the group and help HSBC in the transition to find a replacement, while Noel Quinn takes over as interim chief executive.

Flint, who has spent his “entire career” at HSBC, said in a statement:

“I have agreed with the Board that today’s good interim results indicate that this is the right time for change, both for me and the Bank. After almost 30 years with HSBC, I will be sad to leave but I do so looking forward to a new personal challenge, and confident that our people will continue to serve the Bank’s stakeholders in the best possible way.”

Flint was also granted “good leaver" status, meaning he will be entitled to any stock options that vest after he leaves. Under his contract, he won’t be allowed to work for a competitor for two years.

READ MORE: HSBC announces 4,000 job cuts

Today, HSBC announced its interim 2019 results, for the period six months to 30 June. It said that pre-tax profits rose by 15.8% to $12.4bn (£10.2bn). Reported revenue was also up 7.6% while reported operating expenses were down 2.3%.

On an earnings call, the bank confirmed that it is planning to cut up to 2% of the 237,685-strong global workforce — which equates to 4,700 people.

Mark Tucker, Group Chairman of HSBC, said in a statement:

“HSBC is in a strong position to deliver on its strategy. In the increasingly complex and challenging global environment in which the Bank operates, the Board believes a change is needed to meet the challenges that we face and to capture the very significant opportunities before us.”

HSBC stock trading in Hong Kong (0005.HK) was down by nearly 2% in Asian-hour trading. In London, HSBC fell by nearly 2% by midday:

Chart: Yahoo Finance