HSBC is expecting staffing levels to reduce by around 180 following a recent announcement that the bank plans to increase its focus on digital banking services.
Last month, HSBC announced that it will be closing seven branches in Malta and combining two further branches into a new Qormi flagship in an attempt to modernise and digitalise their services.
In light of this news, Company Secretary Dr George Brancaleone released a company announcement this morning detailing the bank’s expectations which include ‘staffing levels to reduce by around 180 and, as a result, in the financial year ending 31 December 2019 the bank will incur a restructuring charge of circa €16m.’
The 180 employees had applied for a voluntary exit scheme which HSBC had agreed on with the MUBE.
Although restructuring may incur a considerable short term cost, HSBC expects that it will benefit from ongoing cost savings in the future as a result of its decision to focus on digital banking.
“The Bank will remain one of the country’s largest employers,” the statement continues.
“The implementation of the strategic actions announced in October 2019 will enable it to maximise the opportunities arising from changing customer usage of banks and to continue to mitigate the long-term impact of negative interest rates.”