HSBC to Reduce Head Count by 50,000 as Part of Overhaul

HSBC to Reduce Head Count by 50,000 as Part of Overhaul

HSBC Holdings PLC said it would eliminate up to 50,000 jobs as part of a global overhaul to improve the profitability of its sprawling operations.
The bank said it would refocus its business on Asia, where the lender was founded, and try to save up to $5 billion in annual costs by 2017. HSBC is slicing the size of its investment bank, exiting from Turkey and scaling back its franchise in Brazil. The moves would reduce the workforce by about 19% over two years at Europe’s largest bank by assets.

“Slaughtering the staff is not necessarily the solution unless management makes the bank considerably less complex,” said James Antos, analyst at Mizuho Securities Asia

Despite the huge cuts, investors seem underwhelmed—shares fell 1% in London trading.

The original story was published at The Wall Street Journal