HSBC sees cutting office space by 20% this year; other banks gear up for return

• HSBC Holdings (HSBC +4.2%) plans to reduce its office footprint by 20% and halve its previous travel costs as the pandemic pushed companies to rethink their work set-ups.
• The bank expects to get halfway to its long-term goal for a 40% cut in office space by the end of this year, HSBC Chief Financial Officer Ewen Stevenson said in an interview on Bloomberg Television.
• In addition to making fewer commutes to the office, Stevenson expects that banker will cut back on business trips, by using video technology instead in many cases.
• “We’ve basically baked in about half the costs of travel going forward by using lot more video technology and having people go on fewer, longer trips when they do travel," he said.
• HSBC, though, will keep its headquarters in London, CEO Noel Quinn said in a call on Tuesday.
• Other banks, though, are urging employees to return to the office. JPMorgan Chase (JPM +0.2%) told its workers that its offices will be open to all employees as of May 17, subject to a 50% building capacity limit, Bloomberg reported, citing a memo sent to staff.
• The bank said it "would fully expect that by early July, all U.S.-based employees will be in the office on a consistent rotational schedule.”
• Goldman Sachs (GS +0.4%) Chief David Solomon has called work-from-home arrangements an "aberration" that needs to be corrected quickly.
• Citigroup (C +0.5%) will start asking more workers to return to the office in July and Wells Fargo (WFC +1.3%) aims for a "more normal operating model" in September.

Comments

[DividendMonger]

For once, US banks should follow HSBC.

[tyoungt1]

Lol, these banks aren't going back into leased office space. If they own it, yes some will return there....because corporate retail space value has tanked. If they are renting it and under contract, once that contract is up they are going home. Major metro areas relying on corporations holding office space downtown are going under and very soon.

[29890185]

The difference between "using lot more video technology " and the personal on-site selling is that the people that travel will get the deals closed more often than having a customer sit in front of his ZM or skype set, stuck to his chair,,, or have they figured out how to do a business lunch "using lot more video technology" ? Guess who gets the contracts done.

[mikedigi65]

Work from home aberration...I guess you’d have that perspective when you are insatiably driven by profits and employees are merely a tool in the toolbox to achieve those profits...all done under the brilliant disguise of our culture is about mentorship, innovation and collaboration.

[Mike Schimek]

@mikedigi65 Yeah, you should start a non profit bank. Find employees that are willing to work for free. Seeking to make profits is bad. Duh.

Or wait, this is an investing forum, maybe you should invest your money in companies that aren't motivated to make a profit. Yeah that should work out gud for u.

[wal shoe]

@mikedigi65
Yeah, a real woke comment

[mikedigi65]

@Mike Schimek classic red herring....never said anything about employees working for free and profits are bad. Interestingly GS had it’s highest revenue year in over a decade. Maybe on the day Solomon made the remarks about the “abberation” he just found out his pay was cut by $10M.

[Phil Dumfee]

Get back into the office. Nothing is getting done.

[frogmaier]

in this tech world, why would ANY company lease expensive office space.
there are tons of cities that would PAY people to move and work remotely
to their city.

[NVE$TOR]

these banks are outdated and will fail in due time, screw the execs

[cristobal cardona]

@NVE$TOR Yes but they have built and invested in physical facilities lots of $.

[cryptointhewallet]

@cristobal cardona they won't have to worry about that, poppa govt will make sure they get a bailout