Britain based investment bank and provider of financial services HSBC Holding plc. (HSBC) will be cutting its labor force by 35,000 employees as a measure set to help the bank come out of the coronavirus pandemic.
This massive redundancy plan had been agreed on earlier as per an internal memo of the company however execution of the plan was shelved for a while for reasons the company failed to disclose.
The plan was initially set on March, but the bank later retracted claiming extraordinary circumstances during coronavirus pandemic indicated it would have been wrong to lay off the employees.
The bank says the affected employees will be jobless just in a medium term as the company looks for long term solutions.
In the internal memo, the bank’s chief executive Noel Quinn, says HSBC will also completely halt all external recruitment of new staff. This memo was circulated to all 235,000 employees of the bank distributed worldwide.
“We could not pause the job losses indefinitely it was always a question of not if, but when,” said the CEO.