Hit or Miss? HSBC announces job cuts as profits rise

The axe falls HSBC's announcement that it will cut 30,000 jobs over the next three years coincided with a second piece of news concerning a rise in profits over the first half of 2011.

Hit or Miss? HSBC announces job cuts as profits rise
Hit or Miss? HSBC announces job cuts as profits rise

With pre-tax profits up by three per cent to $11.5bn, Europe's largest bank said it would be cutting one in 12 of its 52,000 global workforce. Newspapers including the Daily Mail noted that the profits were equivalent to £40m a day.

HOW I SEE IT - Andy Barr, Co-founder, 10 Yetis

Poor old HSBC - they announce better than expected financial results only to shoot themselves in the foot by also announcing 30,000 job cuts. Devil in the detail financial PR people will shout that they had to make the announcements together as part of some regulatory rule, but us 'normo' PR people will have winced. Every PR person who has ever been involved with a listed company will also know that City analysts love to read about a reduction in costs when annual results are made and this is borne out by HSBC's share price rising by nearly five per cent immediately after the news. It is as if HSBC read the PR mantra about burying bad stories without realising that you could not be both the good and bad part of the story. It's a big miss in terms of media coverage but a hit in terms of improving the share price.

MISS.

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

Max Clifford trial jury finishes sixth day of deliberations

Max Clifford trial jury finishes sixth day of deliberations

The jury in the trial of celebrity publicist Max Clifford on 11 charges of indecent assault has been sent home and will reconvene tomorrow morning for a seventh day of deliberations.

Analysis: Fishburn chiefs keep eyes on future despite mounting departures

Analysis: Fishburn chiefs keep eyes on future despite mounting departures

Fishburn's management have defended their reinvention of the 23-year-old agency amid industry mutterings, fed by a series of director-level departures, about the direction in which it is going.

Hit or Miss? EasyJet backs Shakespeare Day campaign with world record attempt

Hit or Miss? EasyJet backs Shakespeare Day campaign with world record attempt

EasyJet aimed to break the world record for the highest ever theatrical performance for Shakespeare's 450th birthday yesterday with the Reduced Shakespeare Company performing on a flight from Gatwick to Verona.

Top PRs to gather in Barcelona for inaugural PRWeek Global Congress

Top PRs to gather in Barcelona for inaugural PRWeek Global Congress

Senior executives from IBM, Nestlé, Vedanta, GE, Cargill, Philips and Allianz will be among the speakers at PRWeek's first Global Congress.