The largest Bank of Europe as per assets, HSBC is looking to slash down more than a thousand jobs. This move comes in the wake of the sudden announcement of the departure of the company CEO John Flint, as per Monday reports from the Journal of Wall Street.
These cuts in job will be aimed at senior positions of HSBC. It can be expected to shave almost 4% of total wage costs of the bank, according to what the Group CFO of HSBC, Ewen Stevenson said in an interview with the Journal. These cuts would be a mix of both attrition and layoffs.
HSBC CEO, Flint will resign from the position on Monday. He has served the role for the last 18 months. As per the reports in the Journal, nearly 2% of the total tally of 237,685 employees of the bank could be axed.
A statement from the Chairman of HSBC, Mark Tucker about Flint’s exit said that the Bank is operating in increasingly challenging and complex global environment. As a result, the Board has realized the need for a change to meet these challenged faced, while simultaneously capturing significant opportunities that come their way.
Reuters cited an unnamed individual who has knowledge about the situation and reported that there were major differences between Tucker and Flint over the results and pace of the execution of HSBC’s strategy. These differences arose from the soft approach of Flint in setting targets for revenue and cutting costs for senior level managers with the aim of boosting profit growth, as per the report from Reuters.
Tucker held conference calls with analysts and investors on Monday, during which he stressed on having no disagreement with Flint over strategy. He further remarked that the Bank needs to work hard on the realization of priorities.
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