HSBC Bank Malta said that it will reduce some 180 employees in a restructuring exercise that will cost €16 million.
In a notice at the Malta Stock Exchange, HSBC stated that the employees were offered voluntary retirement schemes, with applications already closed and the workers will be shortly contacted. A bank’s spokesperson told TVM that HSBC accepted 180 applications from its workers to take these schemes. This is at the same level that the bank had announced that it will reduce workers from its books.
HSBC said that the one time cost of this restructuring will be listed in the financial account for the year ending on the coming 31st December. Although the cost is estimated at some €16 million, the bank said it will save costs that the bank will incur in the coming years.
The bank added in its Stock Exchange notice that the exercise forms part of HSBC strategic plan, announced last month, to increase its attention on digital banking services – as was evident in consumer trends in the use of banks – while it will continue to reduce long-term effects of negative interest rates. The bank’s plans include the closure of nine branches, a new branch at the Ħal Qormi headquarters and four new wealth management centres.