HSBC layoffs jolt after previous plan to boost local headcount

The Hong Kong and Shanghai Banking Corporation reportedly laid off more than 40 staff despite its parent, HSBC, saying earlier that it would increase headcount and investment for its local branch.

The layoffs come as a survey found that 15 percent of local companies intend to reduce employees.

The HSBC workers were laid off on Tuesday and Wednesday from the lender's retail banking and private banking departments, as well as the IT department of the insurance segment, local media reported.

A spokesperson for the lender had no comment on the market rumor.

The London-based group restarted its heaviest ever layoff plan in June to slash about 35,000 staff from its global workforce.

Although details have not been released for its Hong Kong arm, the bank has emphasized that it will target cost reductions of US$4.5 billion (HK$35.1 billion) at underperforming units in the United States and Europe and would accelerate investments in Asia, where it draws a large part of its profit.

HSBC's profit before tax from the Hong Kong market totaled US$5.092 billion, even higher than the global sum of US$4.32 billion.

HSBC had a total of 233,000 staff as of the end of June, a net decrease of 2,587 since the end of last year.

Chief financial officer Ewen Stevenson said in August the bank had cut about 4,000 jobs during the first half this year.

Shares of HSBC fell 0.91 percent to HK$32.70, totaling a 46 percent plunge so far this year and making it the worst performer among blue chips.

On the survey, 15 percent of 400 Hong Kong companies plan to reduce staff, workforce solutions provider ManpowerGroup Greater China found. About 40 percent intend to maintain headcount.

Some 13 percent plan to hire more employees, while employers in six major industries - including financial services, insurance, and property sectors - remained cautious given pandemic uncertainties, the survey said.

Separately, Hang Lung Properties said it will not apply for the second tranche of the Employment Support Scheme and has no plans to lay off staff or to cut salaries.

The developer said it will cut property management fees at Amoy Gardens in Kowloon Bay by half next month, which represents an amount totalling HK$2.5 million.

stella.zhai@singtaonewscorp.com