Banking giants are in trouble and it’s starting to show. Key players in the industry have already announced massive job cuts and executives with hefty salaries have been dismissed. HSBC, the largest bank in Europe, has revealed it plans to lay off over 4,000 employees and Citigroup is preparing to shrink its trading staff slashing hundreds of jobs. They are joining other global brands in a wave of layoffs hitting the unstable banking sector.
HSBC Confirms up to 4,700 Layoffs
London-based HSBC, which is the seventh largest bank in the world, is ready to discharge up to 4,700 employees this year, the financial institution confirmed recently. The news comes after the sudden departure of the bank‘s chief executive officer.
John Flint stepped down “by mutual agreement with the board” only a year and a half after his appointment. Noel Quinn, currently responsible for HSBC’s commercial banking, will be the group’s interim CEO serving as Director of HSBC Holdings while the company is looking for a new candidate.
The job cuts amount to 2% of HSBC’s workforce, CFO Ewan Stevenson told investors this past Monday, quoted by the Independent. Aiming to cut salary costs by 4%, the bank is likely to part ways with more senior staff but its management did not go into specifics.
Flint will help with the transition for which he will receive another annual salary and a bonus based on the bank’s performance in 2019. His “good leaver status” entitles him to other benefits as well. No details were shared about any such compensation for the other 4,699 employees who are going to lose their jobs.