GlobalData
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Hang Seng Bank, a lender based in Hong Kong, has announced a restructuring initiative that would result in job losses for approximately 1% of its core workforce.
In a statement, the bank, which is 63%-owned by HSBC, stated that it “reviews and restructures its business from time to time" in response to "the ever-changing market condition and diversified client needs"
As part of this restructuring, Hang Seng Bank plans to enhance operational efficiency and service quality through the integration of technology, reported Reuters.
The bank has not disclosed the exact number of employees classified as core staff, but it employed around 8,300 individuals primarily in Hong Kong and mainland China as of the end of 2024.
Reports from Sing Tao Daily indicated that the bank, which has historically avoided large-scale layoffs, may reduce staff numbers by 10% to 50% in certain teams.
In its statement, Hang Seng Bank noted that new roles would be available for affected employees to apply for as part of the restructuring process, although further details were not provided.
The lender has faced challenges in recent years, including an increase in bad loans attributed to its significant exposure to the property sector in its primary markets.
As of the end of 2024, impaired loans constituted 6.1% of its gross loans, a notable rise from 2.8% at the end of 2023.
This latest move followed HSBC's broader global restructuring efforts, which included workforce reductions to eliminate duplicated roles and reduce costs.
Recently, HSBC unveiled plans to cut 348 jobs in France, about 10% of its workforce, as part of a cost-saving initiative aimed at achieving $1.8bn in savings by the end of 2026.
"Hang Seng Bank to axe jobs as part of restructuring initiative" was originally created and published by Retail Banker International, a GlobalData owned brand.
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