The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64.19 - Other monetary intermediation
300 - 6,000 jobs Number of planned job losses
Announcement Date
17 June 2020
Employment effect (start)
Foreseen end date
Description
HSBC, the UK-based multinational bank has announced that it will cut 35,000 jobs worldwide as it resumes the restructuring plans first announced in February and delayed because of the COVID-19 pandemic. The bank has not published the number of job losses expected in the UK, however, in the February announcement 15% reduction of UK's workforce (41,500) was planned, potentially leading to 6,000 redundancies in the UK. Media sources have reported that investment banking operations in London and the back office sections in London and Birmingham will likely be affected by the redundancies.
The trade union Unite has criticised the restructuring plans and opposes compulsory job losses.
HSBC’s headquarters are located in London, but the bank has operations in more than 60 countries, with Asia accounting for half of the bank’s sales. In 2015, HSBC made 8,000 job cuts in the UK as part of a global restructure.
Update 21/10/2020: According to media reports, HSBC has started redundancy consultations with staff working at its commercial banking arm in the UK, putting 300 jobs at risk of redundancy.
The chief executive has said that the restructuring plans are 'necessary to improve the bank’s profitability', following the loan losses caused by the COVID-19 crisis.
The bank has not confirmed the information about the exact number of job cuts, however, a spokesperson said that HSBC continued 'to restructure and review' the business, as part of the plans announced earlier this year. The commercial banking business provides services to small and medium-sized businesses.
Eurofound (2020), HSBC , Internal restructuring in United Kingdom, factsheet number 101276, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/101276.
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The retail banking sector is fertile ground for studying the impacts of digitalisation on work and employment. Financial services are increasingly provided online, without the intermediary of customer-facing institutions.
European labour markets have recovered strongly from COVID-19. By the end of 2021, little more than 18 months after the start of the pandemic, employment rates in the EU were almost at pre-crisis levels.
