HSBC to shrink its office footprint amid shift to WFH

Europe’s largest bank exploring hybrid work-from-home model

National /
Feb.February 24, 2021 09:50 AM
HSBC COO John Hinshaw (Getty, iStock)

HSBC COO John Hinshaw (Getty, iStock)

HSBC is banking on remote work — and is shedding office space.

John Hinshaw, the group COO of Europe’s largest bank, said during HSBC’s fourth-quarter earnings call that the company will switch to a hybrid model where employees have the option to work from home, Bloomberg News reported.

As part of the switch, the bank is expected to reduce its real estate footprint by about 40 percent, the publication reported. While it’s expected to keep its headquarters in London’s Canary Wharf neighborhood, it will likely shed office space throughout the city as leases come up for renewal, according to CEO Noel Quinn.

About 85 percent of HSBC’s employees are now able to work from home.

“We expect a change in the way we use our office space, recognizing the work-life balance and environmental benefits of hybrid working arrangements,” the bank said in its 2020 annual report.

Many other companies have come to a similar conclusion as the coronavirus pandemic hits the one-year mark. In recent weeks, Yelp and Salesforce announced they would let employees work remotely indefinitely following similar announcements from big tech firms including Facebook and Twitter.

In some cases, firms have looked to sublease their space as their needs have changed. Yelp, for example, is reportedly seeking a tenant for some of its office space in New York City as it re-evaluates its real estate needs.

[Bloomberg News] — Sasha Jones





    Related Articles

    arrow_forward_ios
    Vornado’s Steven Roth (Getty, iStock/Illustration by Ilya Hourie for The Real Deal)
    Urban retail not recovering like malls, shopping centers: Vornado
    Urban retail not recovering like malls, shopping centers: Vornado
    KKR founders Henry Kravis, George Roberts step down as co-CEOs
    KKR founders Henry Kravis, George Roberts step down as co-CEOs
    KKR founders Henry Kravis, George Roberts step down as co-CEOs
    Real estate’s richest get richer on Forbes’ billionaire list
    Real estate’s richest get richer on Forbes’ billionaire list
    Real estate’s richest get richer on Forbes’ billionaire list
    After Newmark partnership ends, Knight Frank inks deal with Cresa
    After Newmark partnership ends, Knight Frank inks deal with Cresa
    After Newmark partnership ends, Knight Frank inks deal with Cresa
    The hotel recovery is far from complete
    The hotel recovery is far from complete
    The hotel recovery is far from complete
    HFZ, partners put historic Detroit building on the market
    HFZ, partners put historic Detroit building on the market
    HFZ, partners put historic Detroit building on the market
    Starwood Property Trust CEO Barry Sternlicht (Getty, iStock)
    Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
    Washington is “putting kerosene on an open fire” with spending bills: Sternlicht
    These hotel markets have entered a depression
    These hotel markets have entered a depression
    These hotel markets have entered a depression
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...