HSBC Plans of Terminating 10,000 Employees: The Question is Why?
HSBC Holdings plans on terminating 10,000 employees out of the 230,000 total work staff; the question is why would they do that? What caused to make such a monumental downsize?
There are two unknown sources who confirmed that HSBC is planning on, indeed, removing 10,000 employees from their staff. The termination of employees is due to budget cuts, and slashing costs as much as possible. The process of termination will mainly primarily revolve around those who have high-paying jobs in HSBC.
They have already stated that the commencement of the most recent wave of terminations will occur after the third-quarter financial results and analysis. Noel Quinn, the interim chief executive officer, took on the role in August of this year after the bank released a statement that John Flint was departing. The investment banking company decided that it was time for a change to tackle the “challenging global environment” of today.
The truth of the matter was, behind the curtains, was that there were constant conflicts and rising tensions between Flint, and chairman, Mark Tucker. They were constantly conflicted over an array of topics; one of these topics was the appropriate method to cutting expenses.
The reported terminations were decided after HSBC stated that it would be letting 4,000 employees go this year. Another factor to this decision was the acceleration of the trade war between the United States and China, along with the political unrest in Hong Kong’s financial market and Brexit.
HSBC Holdings refused to comment on the issue after releasing the statement on the terminations.
Who is HSBC?
HSBC is considered as one of the largest financial services and investment banking organizations in the world. They have over forty million customers that utilize HSBC through four businesses on a global scale. These businesses include: global banking, private global banking, commercial banking, retail banking and wealth management. Their networks cover sixty five countries in five continents, including the Middle East.
Their primary objective is economic growth. They link consumers with opportunities, allow businesses to grow and investments to escalate, and they take pride in aiding people to meet their financial goals and then some.
They are known as a respected financial institution that takes care of their clients. However, with the issue that is currently happening in the internal structure of the company, there is reasonable doubt on whether they take care of their staff, as well.