Beginning of Major Lay-Off Plan
The bank which calls itself “The World’s Local Bank,” HSBC, has decided to lay-off at least 200 employees in six countries in the Middle East. The job cut of 200 in the region is just the beginning of a major reduction in worldwide employees reaching as many as 30,000 cuts by the year 2013. The number 200 represents a 2.3% reduction in jobs in the Middle East region.
Six Countries Affected
The proposed lay-offs will affect HSBC workers in the United Arab Emirates, Qatar, Bahrain, Jordan, Lebanon and Oman. A regional “hub and spoke” model of organization will also be newly instituted, with the hub located beyond these six countries, in Dubai, where operations will be strengthened.
The manager of personal financial services at HSBC, Rick Crossman, in the UAE has said, “The UAE has a very strong retail banking and wealth management business, and in addition will become the hub country for the regional business. Because of these factors, we anticipate minimal – if any – job losses in the UAE.”
Leaner Business Plan Needed
A leaked memo which was cited by the Times of Oman quotes the MENA regional head of retail banking and wealth management for HSBC Francesca McDonagh, as saying, “We have more management layers than is necessary, and accountability between region and country is not well defined.”