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HSBC’s overhaul to be delayed over COVID-19

Financial Times reported on Wednesday, that HSBC Holdings PLC’s restructuring could be delayed due to the Covid-19 outbreak.

In February, HSBC has announced it will cut 35,000 jobs worldwide and close its 27 branches over the next three years as part of dramatic restructuring, as it reported that its annual profits fell by a third. More on this in the article right below:

Read also: HSBC to close 27 more branches this year!

Noel Quinn has just stepped into a full-time job as CEO of HSBC this month. His first task will involve coming up with a strategy and overcome downturns that the coronavirus has created and keeps on creating.

“Noel has proven to be the outstanding candidate to take on a role permanently that he has performed impressively on an interim basis since August 2019,” said Chair Mark Tucker.

HSBC has multiple assets in Asia, so they’ve been taking it seriously already but since the spread in Europe, the outcome is expected to be even more lethal.

Noel Quinn is a veteran at HSBC and as mentioned has been serving as an interim CEO. He came up with a move to slash costs and that secured his position as the new head of the company.

Noel Quinn, HSBC CEO, Source: Bloomberg

Now, with the virus continuing to have unforeseeable damaging effects on the economies worldwide, Quinn’s previous austerity plans could become harder to implement. For example, it could be hard to fire a trader in Europe that is working from home or caring for a sick family member.

The fresh HSBC’s CEO will have to include all other impacts that were not previously accounted and especially those that are social and political.

At least two employees of HSBC have tested positive for the coronavirus, which prompted the lender to tell employees to work from home to avoid spreading the virus.

Quinn said there is “much that remains to be done” at HSBC.

Shares in the company closed 0.7% lower at 491.00 pence each in London on Wednesday.

Sources: https://www.pymnts.com/news/banking/2020/hsbc-overhaul-may-be-delayed-over-covid-19/ https://www.morningstar.co.uk/uk/news/AN_1584599956267201600/press-hsbc-structural-overhaul-to-be-delayed-amid-virus-crisis—ft.aspx

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Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

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