Surprise lay-offs hit Hong Kong’s Hang Seng Bank amid HSBC’s sweeping revamp
Some departments lose up to 20 per cent of their staff, while the hardest-hit team is cut in half, sources say
The affected units were mainly supporting departments such as information technology and corporate communications, as well as index compiler Hang Seng Indexes and some units that were being consolidated in the restructuring, the sources said.
The total number of people affected was not disclosed. Some departments lost up to 20 per cent of their staff, while the hardest-hit team was cut in half, the sources said. Wealth management and other key growth areas would not be affected and were instead the focus of expansion, the sources said. The bank is currently recruiting for about 100 vacancies.
“Hang Seng’s lay-off plan is a surprise to the market, because the domestic lenders in Hong Kong tend not to have massive lay-offs and tend to keep a stable headcount even during the previous financial crises,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
“The surprise lay-offs may reflect the challenging operating environment and weak local economy in Hong Kong, as both the retail and property sectors have performed badly. Hang Seng has no choice but to cut down staff headcount to reduce costs.”