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.