Up to 2% of HSBC bank’s 237,685 employees could lose their jobs, a bank executive said Monday, as the bank flagged a worsening outlook for the global economy in its second-quarter results. The economy’s woes are beginning to manifest in real job losses, and it’s not likely to end here.
The retail apocalypse and subsequent job losses have somehow managed to escape scrutiny as people put on blinders to what’s really going on in the economy. As we’ve said before, Main Street and Wall Street are two different things when it comes to how well folks are doing during this economic “expansion.”
Finance director Ewen Stevenson in an interview said the job cuts, which will be targeted at senior roles, would shave up to 4% off HSBC’s wage costs and would come from a mix of layoffs and attrition as people leave for other jobs. HSBC said severance costs this year would be $650 million to $700 million and save it that much annually going forward. –Market Watch
Also compounding the job losses was the agreement by former CEO John Flint to depart. HSBC said Flint had agreed to leave the CEO job after a mere 18 months, ending the 51-year old’s three-decade career at the bank. Chairman Mark Tucker in an interview said Flint’s departure doesn’t signal any change in strategy, but that the board felt a leadership shift was needed to respond to “an increasingly complex and challenging global environment.”
How to Prepare For An Economic Downturn: Go Debt-Free In 2019
Tucker also said on Monday the bank will remain focused on building out its business in China, which had been a priority for Flint and his predecessor, Stuart Gulliver. Asia-focused HSBC, already China’s largest foreign bank, has long aspired to grow further in the country’ retail and business banking market, according to Market Watch. However, the bank’s relationship with China was tested last year when U.S. prosecutors drew upon internal bank documents to help build a fraud case against an executive at Chinese telecommunications company Huawei Technologies Co. Huawei and the executive deny any wrongdoing.
Stevenson added that parts of HSBC’s business also have been under pressure from trade tensions between the United States and China. The trade was has curbed trade and investment for some customers, albeit to a limited degree, according to the bank, while Stevenson said a slowdown in global trade “will have an impact on the business.”
It is never a bad time to prepare for an economic downturn or a job loss.
I understand that the DOW took a beating today.
OFF TOPIC
Many much smarter than I have said that we are in a Cold Civil War. Our Revolution against Britain was proceeded by violent acts such as the Boston Massacre and Tea Party. Our first Civil war was proceeded by John Brown’s raid and the Missouri Troubles where many were killed.
More and more these shootings have a political element to them. Thus I believe that we are heading into a Second American Civil War. Antifa is arming up and the Left is forming ” John Brown” rifle Clubs” to combat we Deplorables.
“Up to 2% of HSBC bank’s 237,685 employees could lose their jobs ”
Actually a 2% job loss does not amount to a serious house cleaning for a big bank; unless of course, your job is one of the jobs lost. Typically, 10% would be the magic number across the board in a major reset.
HSBC appears to be resetting itself to pursue a new strategy (survival) congruent with the New Financial Reality that is fast approaching. 🙂
You are right, 5,000 people is at most 2 months personnel turnover.
1% per month is 12% per annum and an average career stay of 8 years. A very stable number for an international bank.
the price of gold soared up again! I sold gold and silver to bullion exchanges, very pleasant experience. https://bullionexchanges.com/sell-to-us
HSBC losing money? Drug dealers must be in a recession huh?
When the Jones’s can’t keep up with each other, they are going to be pissed.
Where’s the “Cash for your Gold” peddlers? They came out of the woodwork during the last downturn.
Cubicle rats.
Sounds like typical lender behavior. They’ll probably just cut the guys whom were involved in the numerous HSBC scandals out there. You know, since the big banks are buying real estate, rather than continuing to originate loans for real estate, don’t need quite as large of a workforce. With fed negative rates, they don’t need to even originate a single loan to rake in those fed bucks.
Sounds like typical lender behavior. They’ll probably just cut the guys whom were involved in the numerous HSBC scandals out there. You know, since the big banks are buying real estate, rather than continuing to originate loans for real estate, don’t need quite as large of a workforce. With fed negative rates, they don’t need to even originate a single loan to rake in those fed bucks.
Den of thieves unemployed… oh well….
100 years ago Mac ran the story about Mason Buggy Whip company when they close all 144 factories.
Where are your stories regarding thousands of new employees getting hired?
Oh I see, an infromercial for Peter Schitt, the re-run.
Are you saying that the employees are hired and fired?
Banks did themselves in years ago when they decided to steal their depositors money with monthly fees. I have not been in a bank since Credit Unions where allowed to have shared drafts (checking accounts). They actually pay me for keeping my money rather than stealing it.
“an increasingly complex and challenging global environment.”
Your franchise is being paid for specific mannerisms, not to think.
Take a long walk, using your feet. The left one goes in front of the right, and so forth.
Look at what kind of business is being done, using your own two eyes.
There is nothing complex or challenging about this. (Cult of the Great Replacement.)
“A kakistocracy is a system of government that is run by the worst, least qualified, and/or most unscrupulous citizens.”
If you’re in a business cycle, where your staff’s only skills are…
— plaque lines up with the fly
— cash register
— passive aggression toward WASP patriarchy
… if you are hired and laid-off, to keep you from seniority and benefits, rotflmao.
To undercut your third world ghetto, they’re going to have to scour even darker jungles for undiscovered tribes. rotflmao
“an increasingly complex and challenging global environment.”
Your f ranchise is being p aid for specific mannerisms, not to think.
Take a long walk, using your feet. The left one goes in front of the right, and so forth.
Look at what kind of b usiness is being done, using your own two eyes.
There is nothing complex or challenging about this.
(Cult of the Great Replacement.)
“A kakistocracy is a system of government that is run by the worst, least qualified, and/or most unscrupulous citizens.”
If you’re in a b usiness c ycle, where your s taff’s only s kills are…
— plaque lines up with the fly
— c ash r egister
— passive aggression toward WASP patriarchy
… if you are h ired and l aid-off, to keep you from s eniority and b enefits, rotflmao.
To undercut your third world ghetto, they’re going to have to scour even darker jungles for undiscovered tribes. rotflmao