HSBC announces record profits, and the need to dump 30,000 jobs due to rising costs.
That equates to 10 percent of HSBC’s 296,000 workforce. The bank’s 110,000 staff in Europe and North America will bear the brunt of the job cuts.
“It’s a big number, but it makes sense because HSBC’s costs are fairly high,” Daniel Tabbush, analyst at CLSA in Bangkok, said of the staff cuts. “Hopefully these cuts help make an impact in helping lower the bank’s cost-to-income ratio.”
See, where I come from, “profits” are what happen after you cover all your business expenses. If you’re making profit, it means everything to keep the business running is going gravy and you have extra cash. Admittedly I’ve only ever dealt with small business owners and not multinational corporations, but isn’t that what we all understand to mean “profit”? As in, if your business is profiting, there’s no need to dismantle the work force to cut costs?
But again, the “job creators” really do look solely at the bottom line. If 30,000 workers can yield a $5mil profit, but 20,000 can yield a $5.5mil profit, why keep the extras? Not like those few thousand workers need incomes or anything.