AM I NEXT? IS THE HANDWRITING ON THE WALL AT HSBC

Am I Next? Thousands of Jobs at risk at HSBC.

London, United Kingdom-based HSBC, parent to HSBC Bank USA, has announced the departure of CEO John Flint and signaled its intention to eliminate thousands of jobs to compensate for “an increasingly complex and challenging global environment.” HSBC Bank USA is still operating in turnaround mode.

According to published reports, “HSBC’s finance director Ewen Stevenson said up to 2% of the bank’s 237,685 employees could lose their jobs. He said the cuts, aimed at shaving up to 4% off HSBC’s wage costs, target senior roles and will come from a mix of layoffs and attrition as people leave for other jobs. HSBC said severance costs this year would be $650 million to $700 million, saving it around that much annually going forward.”

In a statement to the financial media…

“On outlook, we continue to progress towards our 2020 return on tangible equity target, but the interest rate outlook has softened relative to the first quarter, and geopolitical risks have heightened across many of our major markets. In response to this we’re actively managing costs and investment growth in order to respond to a more challenged revenue outlook.”

“However, one priority where we’re not on track is the turnaround of our US business. While good underlying progress has been made on costs and capital – costs were down 7% in the second quarter relative to the second quarter in 2018 and we got CCAR approval to dividend a further $1.8 billion of capital back to the Group ‒ the US revenue outlook has become more challenged in recent months. There’s been a sizable shift in US dollar interest rate expectations, so we’re now not expecting to achieve a 6% return on tangible equity in 2020. But we recognize that current returns in the US are not acceptable, and it remains a firm priority of ours to improve these.”

Look for the pace of turnaround changes to HSBC Bank USA under the guidance of the recently hired Michael Roberts, Citigroup’s 34-year veteran who served as Citigroup’s chief lending officer and global head of corporate banking and capital management.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT ORACLE (PILLAR DATA SYSTEMS)

Pillar Data Systems, division of Oracle is shutting down with 300 layoffs.

San Jose, California Pillar Data Systems, a computer data storage company owned by Redwood Shores, California-based Oracle, Inc. is quietly closing its flash storage division and laying off an estimated 300 employees. The ever-secretive Oracle refused to comment further than to say “As our cloud business grows, we will continually balance our resources and restructure our development group to help ensure we have the right people delivering the best cloud products to our customers around the world.” It appears that Oracle is leaving the hardware business behind as it transitions to a public cloud infrastructure business and thus has no further need for flash storage hardware and its associated software.

As the company continues its transition to the cloud, there will be additional reductions in force as centralized support services handle customers rather than dedicated teams of software/hardware/sales personnel.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT KENNAMETAL (CARBIDIE)

Am I Next? Layoffs at Carbidie division of Kennametal.

Latrobe, Pennsylvania-based Kennametal, supplier of metalworking tooling, has announced layoffs at its Carbidie plant located in Hempfield, Pennsylvania commencing in October and continuing through the end of March 2020, when the plant will close. Sixty employees will be laid off. The plant manufactures carbide tooling inserts, dies, jigs, and other parts which improve the durability and precision of tools used in metalworking and other industries. Operations at the plant are scheduled to be transferred to a recently modernized facility located in Rogers, Arkansas.

Kennametal President and CEO, Markos Tambakeras, issued market guidance noting…

"We are pleased that our proactive and disciplined management of the business has enabled us to perform significantly better than the market. In addition to the cost-saving measures already undertaken in the current fiscal year, the company will further reduce its salaried worldwide work force by 200-250 positions or 6-8 percent of its salaried positions. This is in addition to gradual headcount reductions over the past several months through both layoffs and attrition that totaled 500 positions. Declines in North American manufacturing demand have been more severe and pervasive than had been forecast. Our salaried work force currently is configured to support higher demand than we are realizing. Consequently, we are activating further contingencies to mitigate current market conditions and position ourselves to outperform when the markets improve."

“Most of the staff reductions will occur in the business areas that have experienced the greatest decline, but will not be concentrated at any single location. They will be focused primarily in North America where market conditions have had the greatest negative impact on sales, with approximately 250 positions being eliminated in Pennsylvania. Kennametal will provide certain financial benefits and outplacement services to everyone affected by the terminations. These services include assistance in preparing resumes, developing interview skills and finding other employment.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?