HSBC plans to cut 35,000 jobs as profits plunge.
HSBC, one of the largest banking and financial services institutions in the world, is facing a radical downsizing of its operations in Europe and the US.
As it adjusts for the risks, the London-based bank said through a statement it aims to cut annual costs by $4.5bn and shed $100bn of assets adjusted for risk by the end of 2022 as it attempts its most drastic overhaul since the financial crisis in an attempt to kick-start its stuttering business.
According to the Financial Times, HSBC said it expected the overhaul to lead to about $6bn in restructuring costs and $1.2bn of costs related to disposals, the majority of which would fall this year and next. Investors reacted negatively to the strategic overhaul, sending shares in HSBC down by 6 per cent at the close of trading. HSBC also said it would shrink its sales and trading and equity research operations in Europe and move its structured products division from London to Asia.