Noel Quinn, a temporary chief executive of HSBC, says this time things are going to be different.
Revealing the bank’s third shake-up since the monetary crisis, Quinn said this week that the latest overhaul would be less reliant on external factors, such as international rates of interest and China’s economy.
In a call with employees Tuesday, Quinn and Chief Financial Officer Ewen Stevenson had been put on the defensive over the bank’s dedication to the overhaul provided that Quinn, the man disclosing it, has not been made permanent.
HSBC’s shares plunged 6.6% Tuesday to their lowest stage in over three years after the lender, which has struggled to keep pace with leaner and more focused competitors, said it will cancel buybacks for two years to pay for the reshuffling.
Stevenson told workers that even if the markets didn’t have much conviction in the execution of the strategy, HSBC workers must rally behind management to see it through.
The London-based bank, which makes 90% of its revenue in Asia, is contracting its funding bank, sacking 35,000 jobs and improving its U.S. and European activities, to remove $4.5 billion in costs.
HSBC veteran Quinn is auditioning for the permanent position of the chief executive, which the financial institution stated in August could be introduced within six to 12 months.
HSBC’s Hong Kong shares plunged 1.3% Wednesday, while the London stock closed up 1.3%.