HSBC plans to cut its office footprint by 40% globally over the long term as part of a cost-cutting drive set out on Tuesday, in a further sign the pandemic could mean permanent changes to working patterns, Reuters reported. In Manhattan, the London-based bank occupies nearly 550,000 square feet at 452 Fifth Ave.
CEO Noel Quinn said the reduction would come from exiting office buildings as leases expire and wouldn’t include branches or HSBC’s headquarters in London’s Canary Wharf. Retained buildings will be used more flexibly, Quinn said.
“We are focused on those offices with support functions and head office activities when we talk about the 40% reduction,” Quinn said. “We believe we’ll achieve it via a very different style of working post-COVID with a more hybrid model.”
Although several banks have said they will adopt more hybrid working, few have spelled out specific targets for reducing space, reported Reuters.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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