HSBC firing 35000 employees by 2022?

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The rumors on the media have it that HSBC firing 35000 employees in a swift transaction to the digital systems. One of the largest banks across the globe, Hong Kong and Shanghai Banking Corporation, better known as HSBC is planning to let go as many as 35000 employees in the next two years in order to invest in digital systems.

In a recent call between the bank executives, the information was revealed in a rather vague manner; however, the call was pretty clear that the bank would be cutting down costs by 35 percent while increasing the profits for the bank.

HSBC firing 35000 employees?

Although the call never really mentioned the HSBC firing 35000 employees in the call, it seems that it would become an eventuality given the bank’s future plans.

We will target the following in 2022: a gross RWA reduction of more than $100 billion; a reduced cost base of $31 billion or lower; and a CET1 ratio in the range of 14% to 15%. Taken together, these should help us achieve our main target, our return on tangible equity of 10% to 12% by 2022. With a full-year benefit of cost reductions and redeployed RWAs flowing into subsequent years.

On the other hand, the bank is already planning to move almost $20 billion worth of assets into a blockchain-based platform dubbed the Digital Vault. The move is due in the coming month, i.e., March of 2020.

The cut would come as a devastating move for human resources across the globe. In an ever declining economic state, it seems survival of the fittest is going to become a necessity rather than a philosophy.

Featured Image by KDM

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