HSBC’s Shift in Strategy: Zing App Closure to Impact 400 Jobs
In a move to streamline operations and cut costs, HSBC has decided to shut down its international payments app, Zing, just a year after its launch. This decision is expected to result in around 400 job losses, according to a source familiar with the matter.
A Strategic Review Leads to Closure
The closure of Zing comes after a strategic review within the HSBC Group, which led to the decision to integrate the app’s underlying technology platform into HSBC. The bank’s spokesperson emphasized that HSBC is focused on increasing leadership and market share in areas where it has a clear competitive advantage.
Zing’s Short-Lived Run
Launched in 2022, Zing was designed to complement HSBC’s Global Money product, targeting UK-based customers who use fintech rivals like Revolut and Wise. The app aimed to broaden HSBC’s traditional customer base by offering lower transaction fees. However, since Georges Elhedery took charge as CEO in September, management interest in building out Zing has waned.
Elhedery’s Overhaul
Elhedery, who previously served as chief financial officer, is driving a sweeping overhaul to streamline costs, tighten focus, and improve accountability of performance. As part of this effort, further investment in Zing was deemed an inefficient use of capital.
Job Cuts and Restructuring
The closure of Zing is expected to impact around 400 jobs, including a substantial number of non-HSBC external customer support staff. This move is part of a larger restructuring effort, which has already seen several senior managers leave the bank in recent weeks. Additional lower-ranking job cuts are anticipated in the first quarter, as HSBC seeks to offset headwinds to earnings from lower interest rates, China’s economic challenges, and geopolitical tensions.
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