HSBC mulls over job cuts

HSBC share price: Group mulls over job cuts

Written by
Updated on Aug 11, 2024
Reading time 2 minutes

HSBC Holdings (LON:HSBA) is considering eliminating hundreds of investment banking jobs, Bloomberg has reported, quoting sources with knowledge of the matter. The move would come with the Asia-focused lender’s chief executive officer John Flint pressuring the group’s  top managers to cut costs.

HSBC’s share price has fallen deep into the red in today’s session, having given up 1.07 percent to 646.60p as of 08:54 BST. The decline is largely in line with the broader market selloff which has seen the benchmark FTSE 100 index give up 1.12 percent to 7,137.10 points so far this morning.

HSBC mulls over job cuts

Copy link to section

Sources with knowledge of the matter told Bloomberg that at least 500 jobs could go within HSBC’s global banking and markets, although formal numbers have not been communicated. One person further told the newswire that Greg Guyett, who recently took sole control of global banking, will be pushing through cuts in his part of the business.

The reductions are reportedly expected to begin at the unit as soon as mid-June and will take place over the year. They are part of wider job reductions across the lender, and mark the latest stage of HSBC’s ‘Project Oak’ revamp.

“Business and function lines constantly re-evaluate their needs to ensure they have the right roles in the right locations,” HSBC said in a statement, as quoted by Bloomberg.

The news comes after it emerged earlier this week that the company was planning to boost its Asia retail wealth management staff by about 300 by end of this year.

Analysts on FTSE 100 bank

Copy link to section

Goldman Sachs lifted its rating on the Asia-focused lender to ‘buy’ last week, and hiked its target on the HSBC share price from 805p to 925p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 670.31p.

Advertisement