The economically crippling coronavirus pandemic has driven HSBC’s board to push the British lender not only to restart the original overhaul strategy but also to consider more extensive cost cuts.
The ongoing health crisis has prompted the board to review HSBC's recent reorganization, according to a «Financial Times» report, which was based on unidentified sources at the bank. The board now wants to consider more drastic measures.
The bank has been undergoing restructuring changes while concurrently attempting to retain most jobs. After announcing its plan to cut 35,000 jobs, $4.5 billion in costs and $100 billion in risk-weighted assets, HSBC announced a pause to most of the job cuts while proceeding with its original plan «wherever possible».
Deeper Overhaul
Intensified restructuring could potentially include more job cuts or a possible sale of its U.S. business, the retail network in France and operations in smaller non-strategic markets, the report added. A spokesperson for HSBC declined to comment on the report.
HSBC has been continuously facing a stampede of challenges after finally confirming its permanent Chief Executive Noel Quinn in March this year. Since then, the London-based bank has faced social unrest in Hong Kong, a temporary pause to its plans to cut 35,000 jobs, a debate about the cancellation of its dividend and now a potentially greater overhaul driven by the pandemic.
