British multinational investment bank, HSBC on Tuesday said that it has put on hold plans to cut 35,000 jobs. The global bank reportedly doesn't want its employees to struggle finding work elsewhere during the ongoing coronavirus crisis. Earlier in February, HSBC had announced its plans to reduce the number of employees from 235,000 to about 200,000 over the next three years. Last week too, HSBC had said that it's moving ahead with the plans outlined in February to shift capital from under-performing businesses, reduce costs and strip out layers of management.
The vast majority of redundancies would currently be put on hold due to the exceptional circumstances, global news agency Reuters reported Noel Quinn, HSBC, CEO as saying. Earlier this month, Noel Quinn had announced that he would donate a quarter of his base salary, nearly 160,000 pounds, for the coming six months to charity.
Meanwhile, in Q12020, HSBC'S profit nearly halved from a year-ago, missing estimates. The profit fell after the bank had to increase provisions against bad loans as the coronavirus pandemic hit borrowers globally. "The economic impact of the COVID-19 pandemic on our customers has been the main driver of the change in our financial performance," Noel Quinn was quoted as saying by the BBC.
The profit before tax came in at $3.21 billion for January-March, down from $6.21 billion a year ago. The bank increased its expected credit impairment charges by a hefty $2.4 billion to $3 billion due to the impact of coronavirus and weakening oil prices as well. HSBC warned the impact of the pandemic on the global economy would mean a rise in bad loans, and sustained pressure on its revenues.