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HSBC 'to axe 10,000 jobs' to cut costs

Lianna Brinded
Head of Yahoo Finance UK
HSBC's reported job cuts would be on top of 4,700 redundancies announced in August. Photo: Getty

One of the world’s largest banks, HSBC (HSBA.L), is reportedly cutting 10,000 jobs in a bid to radically cut costs by the end of 2019.

According to a report by the Financial Times, the bank will see “a substantial reduction” in its headcount, under new plans from interim boss Noel Quinn, who has been in the role for about three months. One unnamed source told the paper that “there’s some very hard modelling going on. We are asking why we have so many people in Europe when we’ve got double-digit returns in parts of Asia.”

HSBC employs 240,000 staff worldwide and the report did not reveal what regions would be most affected. If HSBC were to cut the 10,000 jobs, this would be on top of the 4,700 redundancies it has already announced, globally.

HSBC did not comment on the report.

READ MORE: HSBC just got another new banking boss

In August this year, HSBC CEO John Flint stepped down after 30 years at the bank.The group announced Barry O'Byrne as interim head of its global commercial banking division, after his predecessor Noel Quinn took over from Flint — also in an interim capacity.

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 Quinn takes over as interim chief executive.

At the same time, the group announced it will cut up to 2% of the 237,685-strong global workforce — which equates to 4,700 people.

Shares in HSBC are slightly down on Monday morning:

Chart: Yahoo Finance