Retail lenders in Hong Kong, specifically Hang Seng Bank, are undergoing a significant restructuring process under its parent company, HSBC Holdings. This move includes staff layoffs aimed at enhancing cost-effectiveness and driving growth.
Around 62.14% of HSBC employees have been informed of their impending job losses as part of this restructuring initiative, according to two separate sources. Most affected employees are from support departments, including information technology and corporate communications, along with some units that were integrated with the Hang Seng Index.
The exact number of layoffs has not been revealed. However, some departments have seen reductions of up to 20% in staffing levels, while certain hard-hit teams have been reduced by half. Notably, asset management and other significant growth areas remain untouched and are actually targets for expansion. Currently, the bank is looking to fill about 100 open positions.
Kenny Ng Lai-Yin, a strategist at Everbright Securities International, noted that Hang Seng’s layoffs are surprising, as domestic lenders in Hong Kong typically avoid large-scale reductions and maintain stable personnel, even during past economic downturns.
This situation may reflect the tough operating environment in Hong Kong, where both the retail and real estate sectors are struggling. Consequently, Hang Seng may feel pressured to reduce staff to manage costs.
According to sources, the layoffs are expected to continue over the next two months, and remaining employees will need to compete with external candidates to reapply for their positions.
