News Digital Banking

HSBC and Virgin Money halt planned redundancies and branch closures in light of coronavirus

HSBC new CEO Noel Quinn said that redundancies are likely to still go ahead as “remain crucial”.

a man in a suit and tie

Image provided by HSBC

HSBC and Virgin Money are delaying planned redundancies and branch closures following the coronavirus outbreak.

In a memo to staff, HSBC's CEO Noel Quinn (pictured) said the bank had decided to "pause, for the time being, the vast majority of redundancies associated with this [restructuring] programme."

The memo, reported by the Financial Times, follows a month after Quinn unveiled one of HSBC's "deepest restructurings", including 35,000 job losses over the next three years.

HSBC said that "because of the extraordinary impact of the COVID-19 pandemic” that the bank has decided to delay its redundancy programme.

Quinn, who was confirmed in the CEO role earlier this month, said there would also be a hiring freeze at HSBC "other than for a small number of front-line and business critical roles and those already with written offers."

The bank is reducing its headcount from 235,000 to 200,000 over the next three years as it attempts to cut £3.5bn in costs by 2022 and cut more than £70bn of assets.

In the memo, Quinn highlighted that the cost-cutting measures will go ahead as they "remain crucial".

Virgin Money, meanwhile, is reviewing its plans to close branches in light of the virus.

The news , first reported by the Sunday Telegraph, said that hundreds of jobs earmarked for redundancy would now be put on hold because bank branches closures were on pause.

Virgin Money had planned to cuts 500 jobs as part of its integration with Clydesdale and Yorkshire Banking Group (CYPG), as well as closing 22 branches this year and 30 more branches consolidated into the CYPG locations.

Lloyds has previously announced it is to suspend 780 job cuts in the wake of coronavirus.

Companies In This Article

HSBC logo

More Like This