HSBC Announces 35,000 Job Cuts. U.S. Financial Sector Job Cuts In All Of 2019 Was Only 25,000

from Challenger Gray and Christmas

HSBC Group, the London-based investment bank, and financial services firm, announced it would cut 35,000 workers globally over the next three years in an effort to increase revenue and reduce risk-weighted assets by $100 billion, according to the company’s interim Chief Executive Noel Quinn who delivered its fourth-quarter results presentation. In the US, the company plans to close 30% of US branches and reduce expenses by 10-15%.

Global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc. will not track the full 35,000 cuts in its monthly report, as the company is based in London, but will track any job numbers that are released for the United States. The last comparable job cut announced by a US-based firm was in 2018, when Wells Fargo announced it was cutting 26,500 jobs. Prior to that, Citigroup announced 50,000 cuts in 2008, and Bank of America cut roughly 36,000 cuts in 2011, according to Challenger tracking.

In January, Financial firms cut 2,339 jobs, down 20% from the 2,949 announced in December. In 2019, 25,149 job cuts were announced by Financial firms, down 40% from the 42,199 cuts in 2018, and the ninth highest industry for job cutting activity last year, according to Challenger. 2018 was the highest year for Financial sector cuts since 2013 when 60,962 cuts were announced.

“Financial industry jobs data is solid in the United States, but it remains to be seen if this will continue in 2020. This industry, like many others in the US, may cut costs to remain competitive,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc.

Announced Financial Sector Job Cuts

2013-January 2020

Source: Challenger, Gray & Christmas, Inc. ©