HSBC plans to reduce its global workforce by as much as 50,000 people in a bid to cut costs and shift more of its focus to Asia.
It’s unclear how many jobs will be lost in Canada and B.C. after the bank announced June 9 it would reduce its worldwide headcount by 10% to help save US$4.5-5 billion annually.
The banking giant has 6,100 employees in Canada, which could leave more than 500 workers without jobs.
HSBC Canada Bank is headquartered in Vancouver, where newly appointed CEO Sandra Stuart took over the reins June 1.
The fact HSBC Group CEO Stuart Gulliver told investors on a June 9 conference call the bank is making the cuts to shift more of its focus towards Asia could mean the Vancouver workforce remains mostly intact. One of the reasons the Canadian head office is located on the West Coast is due to its proximity to Asia.
HSBC said 22,000-25,000 jobs would be lost directly through these latest cuts. The bank also plans to sell its Brazil and Turkey operations, cutting another 25,000 jobs from its payroll.
In the midst of the U.K.’s spring election, HSBC said it was considering relocating its headquarters from London to avoid tax hikes proposed by politicians.
The bank said it will finish a business analysis of a possible relocation later this year but one of the strong contenders for a new home is the former head office in Hong Kong, where Gulliver said HSBC will be shifting its focus.
While the Vancouver business community said it’s unlikely HSBC would move its global headquarters to the West Coast of Canada, local proponents said it’s possible some of the bank’s major infrastructure and services could relocate to B.C.
