Top HSBC executives at hot desk after losing private offices Business News

Senior executives at HSBC’s head office will have to work in an open space instead of occupying private offices, the banking giant’s chief executive Noel Quinn has confirmed.

Mr. Quinn told the Financial Times that this move is part of HSBC’s cost-cutting plans to reduce its office space by 40% in the wake of the coronavirus pandemic.

Earlier this year, HSBC said it was making the switch to capitalize on new hybrid working arrangements that would see employees working partly from home and partly from the office.

Mr Quinn said it would be “the new reality of life”, adding that he would no longer be in the office five days a week.

He said, “We don’t have a designated office. You show up and grab one.

Senior executives at the bank previously worked in private offices on the 42nd floor of Canary Wharf headquarters, which Mr Quinn called “a waste of real estate”.

He said: “Our offices were empty half the time because we were traveling the world.”

But the new arrangement means senior executives will be moved two floors lower and will have to fight for workspace among other employees. The 42nd floor will be transformed into guest meeting rooms and other common areas, reported the FT.

HSBC has 66 offices in the UK, including at least 10 in London, according to its annual report. Mr Quinn said in February that even though he was committed to keeping the Canary Wharf headquarters, HSBC would likely close offices elsewhere in the capital as they return for lease renewals.

The bank is also moving ahead with its cost reduction plans and is expected to reduce its workforce by around 35,000 employees.