HSBC pauses plans to cut 35,000 jobs during coronavirus outbreak
HSBC says plans to lay off 35,000 employees have been put on hold due to the ongoing coronavirus pandemic.
The bank confirmed that plans to make redundancies, which were part of a wider restructuring, had been “paused”.
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Of those people who have not already been made redundant through the programme, the “vast majority” will be spared for now, it said.
HSBC had announced plans to slim down its workforce over the next three years in February after its profits fell by 33 per cent.
It hoped to reduce its outgoings by $4.5billion (£3.7billion) to $31billion (£25.6billion) or less in 2022.
But in a memo sent to staff this week, Noel Quinn, chief executive of HSBC, said plans had changed.
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“Because of the extraordinary impact of the Covid-19 pandemic, we have decided to pause, for the time being, the vast majority of redundancies associated with this programme where notices have not already been issued,” he said.
“We will also pause external recruitment, other than for a small number of front-line and business critical roles and those already with written offers.”
It is understood that the job cuts will still take place, but at a later date.
Mr Quinn told staff the measures announced in February “remain crucial” to making HSBC “a simpler, more efficient, more customer-focused and leaner bank”.
HSBC has also said it will close 27 high street branches in the UK this year.
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This week the bank upped its interest-free overdraft from £25 to £300 to help coronavirus-hit customers.
Earlier this month, HSBC was forced to evacuate its London offices after a worker tested positive for coronavirus.
Lots of high street banks, including a number of HSBC branches, remain open despite the wider lockdown.