HSBC Plans to Cut 35,000 Jobs as Challenges Mount in Asia

HONG KONG — HSBC plans to cut 35,000 jobs over the next three years as the global bank struggles to revive a business that has come to depend increasingly on China for growth.

The London-based bank said on Tuesday that it aimed to cut $4.5 billion in costs as it faces headwinds that include the coronavirus outbreak in China and months of political strife in Hong Kong, one of its most important bases.

The coronavirus is causing economic disruptions in Hong Kong and mainland China that could have a negative impact on performance this year, the bank warned. The bank lowered expectations for growth across Asia for this year but added that it expected to see some improvement once the virus was contained. Nearly half of the bank's revenue comes from Asia.

• Updated Feb. 10, 2020

  • What is a Coronavirus?
    It is a novel virus named for the crown-like spikes that protrude from its surface. The coronavirus can infect both animals and people, and can cause a range of respiratory illnesses from the common cold to more dangerous conditions like Severe Acute Respiratory Syndrome, or SARS.
  • How contagious is the virus?
    According to preliminary research, it seems moderately infectious, similar to SARS, and is possibly transmitted through the air. Scientists have estimated that each infected person could spread it to somewhere between 1.5 and 3.5 people without effective containment measures.
  • How worried should I be?
    While the virus is a serious public health concern, the risk to most people outside China remains very low, and seasonal flu is a more immediate threat.
  • Who is working to contain the virus?
    World Health Organization officials have praised China’s aggressive response to the virus by closing transportation, schools and markets. This week, a team of experts from the W.H.O. arrived in Beijing to offer assistance.
  • What if I’m traveling?
    The United States and Australia are temporarily denying entry to noncitizens who recently traveled to China and several airlines have canceled flights.
  • How do I keep myself and others safe?
    Washing your hands frequently is the most important thing you can do, along with staying at home when you’re sick.

---

HSBC shares trading in Hong Kong slumped by more than 3 percent.

It is the latest company to shed light on the impact of a fast-moving virus that has gripped China over recent weeks and led to a near nationwide economic standstill. While parts of the country are getting back to work, the reopening of business operations for many companies has been slow.

On Monday, Apple cut its sales expectations for the quarter and warned of the impact on the global supply chain.

“Parts of our business are not delivering acceptable returns,” said Noel Quinn, HSBC’s chief executive.

The bank reported a 33 percent fall in profit before taxes last year compared with the previous year, in part due to a so-called goodwill impairment of $7.3 billion. Mr. Quinn took the helm after the surprise resignation of the former chief executive, John Flint, in August.

The bank has already begun an overhaul that involves cutting back operations in the United States and Europe, Mr. Quinn said.

Months of pro-democracy protests in Hong Kong “weighed on the local economy and caused significant disruption,” Mr. Quinn said. The protests have pushed Hong Kong’s economy into recession as businesses that once thrived from mainland tourism have taken a hit.