HSBC (HKG:0005) is slashing the headcount at its China digital wealth unit Pinnacle by around half, equivalent to 900 staff, Reuters reported Thursday, citing two sources familiar with the matter.
The reduction is seen to be a reversal of HSBC's plans for Pinnacle's expansion in China, the report said.
The cuts involve layoffs, natural attritions, and transfers to other units within HSBC in China, with about 100 to be removed from the fintech arm and 300 to be reassigned elsewhere. The numbers are subject to final discussion, Reuters said.
About 500 agents have left Pinnacle in the past seven months as the insurance brokerage unit stopped renewing contracts after a review of Pinnacle's China business in October, the report said.
HSBC declined to comment when reached by MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.