HSBC’s decision to close its international payments app, Zing, has put approximately 400 jobs at risk, according to a source familiar with the matter. This move aligns with CEO Georges Elhedery’s focus on cost-cutting and streamlining operations at Europe’s largest bank.
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Job Cuts and Strategic Review
The redundancies include a significant number of external customer support staff, with those affected being notified starting Thursday. Although HSBC has not disclosed exact job loss numbers, the closure of Zing is a direct result of a strategic review and a decision to integrate the app’s technology into the broader HSBC platform.
“Following a strategic review of Zing within the HSBC Group and after careful consideration, we have decided to close Zing and integrate its underlying technology platform into HSBC,” a bank spokesperson said. The statement emphasized the bank’s intent to focus on areas where it has competitive advantages and significant growth potential.
Zing’s Short-Lived Journey
Launched just a year ago, Zing was developed to cater to UK-based customers seeking cost-effective cross-border payment solutions, challenging fintech rivals such as Revolut and Wise. It was designed to complement HSBC’s Global Money service, targeting non-HSBC customers to expand its traditional customer base.
However, since Georges Elhedery assumed the role of CEO in September, interest in scaling Zing has diminished. Elhedery, previously HSBC’s CFO, has been implementing a broader restructuring plan aimed at cutting costs, simplifying operations, and enhancing performance accountability.
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Inefficient Capital Allocation
According to the source, further investment in Zing was deemed an inefficient use of resources. The decision reflects Elhedery’s ongoing efforts to streamline HSBC’s focus amid challenges such as lower interest rates, economic uncertainties in China, and geopolitical tensions.
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Broader Implications for HSBC
The closure of Zing follows a wave of senior management departures as Elhedery pushes for a leaner and more agile organization. Additional job cuts at lower levels are anticipated in the first quarter as the bank seeks to mitigate economic headwinds and safeguard earnings.
By integrating Zing’s technology into its existing infrastructure, HSBC aims to concentrate resources on its core areas of strength while addressing the evolving needs of its global clientele.
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