Biz Buzz: HSBC downsizing to spare PH?
Officials of HSBC’s Philippine unit have been mum amid the British bank’s recent announcement of major cuts in its global workforce.
For those living under a rock, HSBC this month said it would slash its global headcount by letting go of some 50,000 employees over the span of a few years.
The development could go either way for HSBC’s operations in the Philippines. While much-maligned overseas, HSBC continues to enjoy a respectable reputation in the local industry. It consistently helps underwrite and arrange major bond issuances by the national government. It is also one of the leading traders of Philippine government securities.
It also helps that HSBC employs thousands of Filipinos at its global delivery center (read: in-house call-centers) based in Alabang.
Data released by a Pasay City lawmaker late last year tagged the HSBC delivery center as one of the country’s leading business process outsourcing (BPO) companies.
Ranked based on 2012 revenues, HSBC placed 18th, having made P4.7 billion that year. The BPO operations of two other global banks, JP Morgan Chase and Deutsche, ranked third and 10th, respectively. Local HSBC officials declined to disclose the company’s headcount in the Philippines.
So what will be the fate of HSBC employees in the Philippines? Together with the job cuts, HSBC said it would make its “pivot” to Asia. “HSBC intends to accelerate investments in Asia,” the bank’s local office said, echoing the statement made by the group’s CEO Stuart Gulliver.
For now, it seems HSBC Philippines is safely off the chopping block. Paolo Montecillo
Going, going…
UNCERTAINTY grows stronger at the Department of Energy (DOE) as Energy Secretary Carlos Jericho L. Petilla may have to be reappointed if he is to continue serving as head of the department.
Petilla, who tendered his resignation this summer but continues to serve as DOE chief pending the naming of a new secretary, is the only member of the Aquino Cabinet who has not been confirmed by the Commission on Appointments (CA).
Questions have been raised as to whether the DOE should just have an officer-in-charge until the next administration appoints a new secretary.
“The President and I will have a talk,” Petilla said.
It may be recalled that Sen. Sergio Osmeña III, who chairs the energy committee in the Senate, once said he was not keen on Petilla’s confirmation hearing because he was “unhappy” with the energy department’s performance. The CA is a body of the Congress of the Philippines as provided under the Constitution. It is an independent body, although its membership is confined to members of Congress. Riza T. Olchondra
Toyota on a roll
TOYOTA Motor Philippines Corp. (TMP) seems to be on a roll this year, beating record after record, and thus further cementing its leadership in the local automotive industry. This time, TMP posted another achievement in May as sales reached 10,511 units, besting its previous record of selling 10,237 units in March. The Toyota Vios, a locally manufactured sub-compact sedan, also marked a first in the industry after posting sales of 2,886 units. This was reportedly the highest record a single model has achieved in the history of the Philippine automotive scene.
“Achieving a new sales record last May displays the continued strong demand for our vehicles, having sold more than 10,000 units last March and again in May. This is a solid testament of the trust and confidence of the consumers in continuously choosing our products. In addition, with the recently signed Executive Order No. 182 entitled ‘Providing for a Comprehensive Automotive Resurgence Strategy (CARS) Program,’ this will allow continuity and increase in contributions to the Philippine economy of the auto industry through local manufacturing,” TMP president Michinobu Sugata said. Amy R. Remo
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