HSBC revives plan for 35,000 job cuts

HSBC has revived plans to cut around 35,000 jobs.

That's according to a staff memo seen by Reuters on Wednesday (June 17).

Chief Executive Noel Quinn wrote the bank will also keep a freeze on almost all external recruitment.

The plan was originally announced in February, but then put on hold amid the global health crisis.

In the memo, Quinn said the job losses could not be paused 'indefinitely', and argued they were 'even more necessary today'.

He said the bank must resume the program as profits fall and forecasts point to challenging times ahead.

The move is part of a wider restructuring intended to cut $4.5 billion in costs.

Most of the job losses are likely to fall on back office roles in HSBC's Global Banking and Markets division - home to its investment banking and trading businesses.

Shares in HSBC have fallen 27% since the start of March.

The outbreak forced the bank to set aside $3 billion in bad loan provisions in its first quarter earnings.

In the original plan, HSBC said it would merge its private banking and wealth business.

It also aimed to reduce its European equity business and U.S. retail network.

HSBC shares rose as much as 1% in early trade Wednesday.