LONDON/HONG KONG (Reuters) – HSBC (HSBA.L) has cut a number of top management roles in its investment bank, memos seen by Reuters showed, a sign that Chief Executive Noel Quinn is pressing on with plans to shake up the group despite having put a wider job cut programme on hold.
CEO Quinn last month announced a temporary halt to plans for 35,000 redundancies across the bank because of the impact of the coronavirus pandemic.
Quinn, who took on the permanent CEO role in March after a lengthy audition process during which Chairman Mark Tucker courted several external candidates, faces a nightmarish task to steer Europe’s biggest bank through the crisis.
HSBC’s twin homes of Britain and China have been particularly hard hit by the pandemic, while cuts to central bank interest rates worldwide will curb the bank’s already pressured profits and it faces a shareholder revolt in Hong Kong over dividend halts.
The new strategy for the bank that Quinn announced in February already needs overhauling, as the lender tries to adapt to the crashing global economy.
“It’s hard to feel anything but sympathy for Noel who’s doing okay in exceptionally tough circumstances,” said Hugh Young, managing director at Aberdeen Asset Management Asia, one of HSBC’s 10 largest investors.