According to MarketWatch, HSBC has announced worldwide job cuts of 50,000, with the UK and Turkey being particularly targeted.
via HSBC to cut 50,000 jobs in major shake-up – MarketWatch.
The HSBC cuts in the UK and Turkey are no surprise. The UK banking sector is bloated, inefficient, with broken business processes, and over-regulated, with a very high-level of customer dissatisfaction. Of course, it’s hard for the families of those who lose their jobs but candidly in other sectors they’d have been out of work way before now.
Turkey is a special case as highlighted by this weekend’s election. The country has a government that has deliberately created tension for international investors – simply the political risk of foreigners doing business in Turkey is now too high.
HSBC will be the flag bearer and expect all the other major banks to follow with their own rounds of savage cuts. This will affect suppliers and contractors to banks, as well. Market forces are alive and well. Perhaps, it’s better for the banks leaders to act before the regulators?
As for Turkey, the HSBC decision will be a wake-up call for other multi-nationals operating in Turkey.