Hang Seng Bank to reduce headcounts across corp comms, IT divisions

Hong Kong-based Hang Seng Bank is laying off employees across multiple departments such as IT and corporate communications, reducing headcounts ranging between 10% and 50%.  

This abrupt move comes as part of its parent company HSBC Holdings’ latest restructuring which is expected to conclude by the end of June, following the year-end bonus distributions in late March. It is understood that staff across various departments are impacted, including back-office support, corporate strategy, IT, corporate communications and the Hang Seng Index Company.  

According to multiple reports such as The Standard, some departments face reductions in headcount as high as 50%, while others face cuts of 10% to 20%. This restructuring impacts employees at all levels, from senior staff to entry-level workers. In terms of termination packages, some staff have received immediate dismissal pay in lieu of notice, while others who were informed a month in advance, are not eligible for such compensation, said the report.  

On the other hand, remaining staff in impacted departments are required to reapply for their positions, competing with both internal and external candidates for over 100 open roles. 

According to a statement seen by MARKETING-INTERACTIVE, a spokesperson from Hang Seng said in response to the evolving marketing environment and the diverse needs of its customers, it continuously review its business operations to ensure its customers' needs are constantly met. “As part of the process, it would create new roles, upskill our people and finetune our business structure to better serve our customers.”  

In fact, a series of layoffs have hit the banking and finance industry. Back in March, Bank of America has reportedly sacked 16 bankers from its investment banking department in Hong Kong as part of global restructuring, according to Reuters. It was understood that the layoffs mainly targeted junior positions.

Don't miss: Hang Seng Bank empowers HK Workers to grow wealth with new campaign

On the other hand, most recently, Hang Seng Bank launched a campaign named "Preferred Banking x PayDay+ – Plan smart! Maximise every dollar of your salary" to connect with potential customers.

This comes as a recent survey conducted by the bank reveals that over 400 working individuals in Hong Kong, aged 18 and above, are saving an average of almost 30% of their monthly income to maintain financial flexibility.

To meet the dynamic wealth management and lifestyle goals of these savvy savers, Hang Seng Bank has launched enhanced PayDay+ offers tailored to payroll customers, helping them maximise their income's value simply and flexibly.

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