Banking giant HSBC plans to cut out hundreds of investment jobs in 2019 following the bank’s decision to focus on roles and jobs that yield higher returns.
According to Financial Times, the lay-offs will star in June, to be completed by the end of 2019. Businesses that will be affected by the cut-offs include those that belong to the trading sector, as well as the advisory division and the capital markets. The lay-offs in investment jobs will help HSBC’s “Project Oak” reach fruition.
In 2018, the company’s revenues failed to reach its target, with its “jaws ration” coming in at negative 1.2 per cent. The lay-offs in the company entails reaching HSBC’s positive jaws, reports Bloomberg. The news site states that more than 500 positions are in danger of being axed, with centralized budget costs urging managers to cut off some of their employees.
In addition, Bloomberg notes that the chief executive of the company, John Flint, intends to keep HSBC in line for reaching its target by reducing investment jobs. In March of 2019, Flint reportedly lectured 400 people in attendance at the Hong Kong event.
As the first quarter of the year closes, the positive jaws of the company have been met.
About Project Oak
In line with the company’s desire to focus on more profitable businesses and arenas, Project Oak will then proceed with shifting the company’s resources to more lucrative sectors and departments.
While details and processes regarding the lay-offs are still being fixed by the company, HSBC is confident that its overall headcount will remain at a steady number. Despite the hundreds of investment positions being targeted for the year, Bloomberg reports that the company plans to add around 700 jobs as it expands in Southeast Asia and Greater China, where private banking remains popular.