HSBC share price outlook as it eyes another round of layoffs

Core Viewpoint - HSBC's share price has declined by 12% from its peak this year, currently at 1,210p, as the bank plans significant job cuts while investing in AI [1][6]. Group 1: Job Cuts and Restructuring - HSBC is planning to lay off at least 20,000 workers in the coming years, primarily affecting non-client-facing roles in global service centers, with many positions being replaced by AI tools [2][6]. - The bank has already reduced thousands of jobs under the leadership of Georges Elhedery, achieving $1.5 billion in cost savings ahead of schedule [3]. Group 2: Financial Performance - HSBC reported a profit before tax of $29.9 billion, a decrease of $2.4 billion from the previous year, largely due to a $4.9 billion adverse impact from notable items [4]. - Revenue increased to $68.3 billion, up by $2.4 billion from the previous year, with expectations of sustained growth, including a projected Return on Tangible Equity (RoTE) of 17% over the next three years and annual revenue growth of 5% [5]. Group 3: Stock Performance and Technical Analysis - The stock price has formed a harami candlestick pattern, indicating a potential bullish reversal, despite the recent correction from 1,374p to 1,210p [7][6]. - The stock remains above the 25-day Exponential Moving Average (EMA), suggesting a possibility of a rebound and a retest of the year-to-date high of 1,375p [8].