HSBC (NYSE: HSBC) is undertaking cost-cutting initiatives that could result in the reduction of up to 10,000 jobs. According to a report by the Financial Times, this could result in a substantial reduction in the bank’s headcount of around 240,000 employees.
These efforts are part of plans being implemented by interim CEO Noel Quinn, who took over from John Flint after the latter stepped down from the role in August. The job reductions under the new plan will be in addition to the 4,700 redundancies recently announced.
The report stated that the company has been facing a challenging global environment due to low interest rates, trade conflicts and uncertainties associated with Brexit. The latest cost reduction effort will be focused mostly on high-paid roles.
HSBC is attempting to find ways to reduce costs in each of its major divisions and the company is also preparing to divest its retail operation in France, which in turn is expected to reduce thousands of jobs, said the report.
Several banks have announced job reductions as the industry struggles with weak revenue and low interest rates.
In the first half of this year, HSBC reported revenues of $29.4 billion and EPS of $0.42. Adjusted revenues rose 8% while adjusted costs were up 3.5%.
The company is set to release its third quarter 2019 results at the end of October. Shares were down in premarket trading on Monday.