‘No targets’ for HSBC Malta in staff cutting plan

HSBC has refused to set targets on its cost-cutting plan for its Malta branch, following reports that 15% of its entire staff had applied for its voluntary early retirement scheme. 

A spokesperson for HSBC Malta told MaltaToday that any talk of figures at this stage is purely “speculative” as the bank has not yet had time to go through the some 200 applications it had received by the deadline on Friday. 

“We have to see who was interested to take it up and consider what cost reduction is possible,” the spokesperson said, while reiterating the bank’s stance that the scheme is “about reducing costs, not people”. 

“Clearly there is a link between staff and costs, but the focus here is cost management. We are very clear that this scheme is being carried out in the spirit of a voluntary programme.” 

Earlier this year, HSBC announced that it would slash 50,000 global jobs in an attempt to boost profits. Half of these jobs would be cut through the sale of business in Brazil and Turkey, and the other half from the closing of branches and the consolidation of IT and back-office operations. 

HSBC Malta’s new chief executive, Andrew Beane, has said that the local bank is “absolutely aligned” with the global bank’s group strategy of expansion “balanced by structural costs and capital pressures”. 

Last month, HSBC Malta announced a voluntary retirement programme for employees as part of its efforts to boost profitability and cost effectiveness. Half the bank’s costs – €52 million last year –  are spent on wages, allowances and staff benefits. 

Employees accepted through this scheme will be granted three years’ wages as a sweetener. 

The Times of Malta reported this week that 200 people, around 15% of the bank’s total staff, have applied for the scheme – a reportedly much higher interest level than HSBC was expecting. 

Yet the bank has been mum on how many of these staff will see their wishes to retire early fulfilled, and whether it is looking to shed staff from any particular job sector. 

“The applications are in the process of being reviewed and no decisions have been taken,” it said. “We will make an announcement on the matter with all the relevant facts in due course according to our market listing obligations.”