The major cuts will occur in the bank’s offices throughout the U.S. and Europe. Additionally, HSBC will focus more on its operations and business in Asia and the Middle East.

HSBC has been experiencing falling profits. Last year, profit decreased by 53%, hitting a low of $5.97 billion.

Originally, there was an intention to sell the American arm of its business, but that was eventually decided against. The cuts are expected to occur gradually over the course of the next three years. Additionally, the benefits of the major restructuring efforts are not expected to be seen until 2023.

However, reliance on Asian business has also taken a hit as the coronavirus continues to spread throughout Greater China. HSBC expects there to be a decrease in the number of loans taken out by Chinese customers and a consequent decrease in revenue.

Noel Quinn is the interim chief executive and has led the effort behind this major restructuring plan. When all the changes are said and done, the costs are estimated to reach $7.2 billion.

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