Banks eye HSBC French assets as it announces 35,000 job cuts worldwide

UK-based HSBC bank said Tuesday it will cut 35,000 jobs and shrink sales and trading in Europe, to focus on faster-growing markets in Asia and better cope with global uncertainties. Two French banks have expressed interest in taking over HSBC's operations in France, though the bank has not indicated what - if any - cuts will be made in France.

HSBC headquarters in London, 2016. Hannah McKay/File Photo/Reuters

Interim chief executive, Noel Quinn, said the bank would cut its global workforce by 15 percent, going from 235,000 to 200,000 employees in the next three years. He said some of the cuts would come from attrition as opposed to outright layoffs.

Quinn, who took over as acting CEO after the ouster of John Flint in August, has been tasked with transforming the international bank. He said the restructure involves "consolidating" of some parts of the business and "reorganising the global functions and head office.’’

HSBC reported its net profit fell 53 per cent in 2019 to $6 billion (5.5 billion euros).

The bank, which is headquartered in London but makes most of its money in Asia, has been struggling with uncertainties caused by the US-China trade war, Britain’s departure from the European Union, and the outbreak of the coronavirus in China.

The virus has caused a “significant disruption" for its staff, suppliers and customers, especially in the Chinese mainland and in Hong Kong.

The protests in Hong Kong have also caused disruptions to the bank's business.

HSBC has been carrying out a corporate overhaul designed to boost profitability by focusing on high-growth markets in Asia while shedding businesses and workers elsewhere, notably in Europe and the US.

No details were given about where the axe would fall, but the AFP news agency reported in December that HBC planned to drop all or part of its banking business in France.

On Tuesday, the daily Les Echos reported that two French banks, Banque Postale and Société Générale, expressed interest in buying out HSBC’s activities in France, reportedly for a small amount of money.

One source said the acquisition could be between 0 and 50 million euros, given the high cost of restructuring, financing the layoffs of HSBC’s 8,500 employees in France.