HSBC Malta

Type
Internal restructuring
Country
Malta
Region
Malta; Malta;
Location of affected unit(s)
Sector
Financial / Insurance/ Estate
64 - Financial service activities, except insurance and pension funding
64 - Financial service activities, except insurance and pension funding
64 - Financial service activities, except insurance and pension funding
130 jobs
Number of planned job losses
Job loss
Announcement Date
7 January 2016
Employment effect (start)
7 January 2016
Foreseen end date
31 December 2016

Description

The banking and financial services organisation HSBC Bank Malta plc has announced that it plans to cut 130 jobs through a voluntary retirement scheme. HSBC believes that this measure will curb operating costs and address its decline in profitability.

This scheme, that will cost the bank €14.7 million to implement, is expected to result in a one-time reduction in the bank’s profits. In the long-term HSBC envisages that this measure will lead to a  €4.4 million​ reduction in yearly operating costs.

It is assumed that the execution of this restructuring initiative is imminent as:

  • Provisions had been made to cover the entire cost of this scheme in the financial year ending December 2015;
  • It is believed that the bank has already received hundreds of applications from interested employees who were keen to apply as soon as the possibility of such a scheme was unveiled in November 2015.

Sources

  • 7 January 2016: www.maltatoday.com
  • 7 January 2016: www.timesofmalta.com

Citation

Eurofound (2016), HSBC Malta, Internal restructuring in Malta, factsheet number 86369, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/86369.