HSBC restructuring plans fuel fears of job cuts

HSBC is planning to restructure its business after the banking giant said its performance in parts of Europe and the US was “not acceptable”.

Interim chief executive Noel Quinn said plans to improve these divisions were “no longer sufficient” and that it was “accelerating plans to remodel them”.

Earlier this month, the bank, which employs 238,000 people, was reported to be planning up to 10,000 job cuts.

On Monday, Quinn said there was “scope” for potential cuts,

“There is scope throughout the bank to clarify and simplify roles, and to reduce duplication,” he told Reuters. However, Quinn did not provide any further details on potential job cuts.

Quinn took over as HSBC’s acting chief executive in August following the shock departure of John Flint.

His remarks came as the bank reported worse-than-expected third-quarter profits.

Europe’s largest bank said profit before tax fell 18% to $4.8bn in the three months to September, and also warned of a “challenging” environment ahead.

See also: HSBC Warns Of ‘Challenging’ Outlook As Profit Falls

Via BBC