The British banking company is expected to announce it’s cutting 10,000 jobs, or 3 percent of its workforce, when it reports earnings on Monday, the New York Occasions reported Sunday, attributing the information to “a person with direct knowledge of the decision.”
HSBC spokesman Neil Brazil in New York declined to comment on the report.
HSBC Holdings PLC told investors in Might that its new management team was implementing a technique that would shift focus away from retail banking to commercial and corporate banking, and would target investment in high-growth economies.
Chief Executive Stuart Gulliver, who moved into his job in the start of the year, stated the bank will be directing investment to fast-growing markets, such as Mexico and Turkey, and scaling back elsewhere by, for instance, withdrawing from retail banking in Russia. These and other moves are intended to trim expenses by up to $3.five billion within three years.
The bank is nonetheless dealing with the legacy of poor loans in the U.S. from the 2003 acquisition of consumer lender Household International Inc. The acquisition produced HSBC the greatest subprime lender in the United States in the time, which resulted in billions of losses to HSBC leading as much as the financial crisis of 2008.
As component of its strategic realignment, the bank also said Sunday that it will sell 195 retail bank branches, most located in upstate New York, to Initial Niagara Bank in a deal worth about $1 billion. The companies expect the all-cash transaction to be completed early next year. First Niagara, a unit of First Niagara Monetary Group Inc. of Buffalo, N.Y., stated in a statement that it expects to retain most of the 1,900 workers currently employed by the affected banks.
The New York Times stated the planned job cuts had been initial reported by British news broadcaster Sky News.
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