Economics
HSBC Warns of Writedown, Job Cuts as Profit Misses Estimates
- ‘Our previous plans are no longer sufficient,’ CEO Quinn says
- Shares slide; writeoffs may come on past tech spending, Europe
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HSBC Holdings Plc embarked on its biggest overhaul in years after profit missed estimates, warning that it will pare back underperforming operations in the face of slowing economic growth and geopolitical uncertainty.
The bank, which makes almost 90% of its profit in Asia and employs 240,000 people, walked away from a key profitability target and said write-offs are likely for some of its European business and technology spending. For acting Chief Executive Officer Noel Quinn, who took over in August following the ouster of John Flint, the review is his chance to put his stamp on the sprawling lender. Cuts at the investment bank have already begun.