HSBC's closure of the international payments app Zing is anticipated to lead to approximately 400 job losses, according to a source familiar with the situation. CEO Georges Elhedery is intensifying cost-cutting measures at Europe's largest bank.
The affected employees, including a significant number of non-HSBC external customer support staff, will be notified starting Thursday. A bank spokesperson stated, Following a strategic review of Zing within the HSBC Group and after careful consideration, we have made the decision to close Zing and integrate its underlying technology platform into HSBC.
The spokesperson emphasized HSBC's focus on enhancing its leadership and market share in areas where it has a competitive advantage and growth opportunities to support clients. The bank did not specify the exact number of job losses resulting from the closure.
Since its launch just a year ago, Zing, a mobile platform concentrating on cross-border payments, aimed to attract UK-based customers who prefer fintech competitors offering lower transaction fees. However, interest in expanding Zing to compete significantly with rivals has decreased under Elhedery's leadership.
Elhedery, who took over as CEO from Noel Quinn, is in the process of cost reductions, strategic focus, and enhancing performance accountability. Further investment in Zing was deemed inefficient.
A series of departures have occurred in recent weeks as HSBC works towards establishing a more streamlined and agile organization. More layoffs are expected in the first quarter as the bank addresses earnings pressure from various factors.
Financial News previously reported HSBC's decision to close Zing.