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HSBC: No plan to cut India jobs, hard to fill posts
"There will be a re-allocation of resources (as part of the 30,000 job cuts announced globally yesterday), but it's not going to be a cut heads. I hate the word cut heads. What we are trying to do is to eliminate bureaucracies at the back-end," HSBC India Chief Executive Stuart A Davis told reporters in Mumbai on Tuesday after announcing the first half results.
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HSBC: No plan to cut India jobs, hard to fill posts
"As far as India is concerned, I won't be overly concerned. The important thing is that both India and China are classified as strategic markets. So we will continue to feel for India and China.
"But generally speaking, we will eliminate as much bureaucracies at the back end as possible by streamlining operations and our IT systems. But we will continue to grow at the front-line," Davis said.
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HSBC: No plan to cut India jobs, hard to fill posts
Even after reporting a surprise 5 per cent rise in first-half pretax profit of $1.5 billion on Monday, HSBC, which is the largest bank in Europe, had said it would shed 30,000 jobs as it retreats from countries where it is struggling to compete, Chief Executive Stuart Gulliver told reporters.
The bank had also said it had already cut 5,000 jobs following restructuring of operations in Latin America, the US, Britain, France and the Middle East and that it would cut another 25,000 between now and 2013.
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HSBC: No plan to cut India jobs, hard to fill posts
HSBC also intends to sell its US credit card portfolio, which has over $30 billion in assets to free up capital.
The bank now aims to shut or sell retail operations in a further 20 countries.
"I think India already has a very high attrition rate. We are hard-pressed to even catch up on the replacements.
"There is a war for talent out there, but as I said, there will be reallocation of resources," Davis said.
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HSBC: No plan to cut India jobs, hard to fill posts
Davis further clarified that reallocation of resources means that if there are too much of bureaucracies at the back-end, what we need to do is to streamline the back-end and use the resources in the front end.
He also hinted at more hiring if the economy economy continues to grow the way it is.
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HSBC: No plan to cut India jobs, hard to fill posts
"All countries in the APAC will follow the same principle as the rest of the world, but I think as far as India is concerned, being classified as a strategic market, the treatment will be different," he said.
He clarified that reallocation of resources means that if there are too much of bureaucracies at the back-end, what we need to do is to streamline the back end and use the resources in the front end.
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HSBC: No plan to cut India jobs, hard to fill posts
If GDP is going to grow at 7.5 per cent, I think India is probably to be at that range also, and then I have to say the head-count will probably go up. But I cannot guarantee that every single part of India operations is going to grow," Davis said.
However, it can be noted that mid-July, the bank had announced some redeployment of its loan recovery staff, which would involve around 150 people getting relocated elsewhere in the bank or those failing in that effort losing the job.