HSBC is preparing for job cuts among senior staff as part of a major restructuring plan, according to a memo from Chief Executive Georges Elhedery. In the memo, seen by Reuters, Elhedery explained that some employees would face layoffs as the bank works to eliminate overlapping roles at senior levels.
The Hongkong and Shanghai Banking Corporation (HSBC) is a British universal bank and financial services group headquartered in London, England, with historical and business links to East Asia and a multinational footprint. It is the largest Europe-based bank by total assets, ahead of BNP Paribas, with US$2.919 trillion as of December 2023.
The restructuring is one of the largest changes HSBC has made in recent years. On Tuesday, the bank announced it would merge certain operations and split its global business into two main regions: East and West. The goal of this reorganisation is to cut costs by removing duplicate management positions.
HSBC’s spokesperson confirmed the contents of the memo but declined to provide any additional comments. The memo was first reported by Bloomberg News.
In his message to employees, HSBC Group Chief Executive Elhedery assured staff that the leadership team would provide more details about these changes soon. He also mentioned that employees would have the chance to ask questions and learn more about how the restructuring would impact them.
As part of the changes, HSBC is reorganizing its business into four key divisions: UK operations, Hong Kong operations, corporate and institutional banking, and wealth banking. According to analyst Michael Makdad from Morningstar, this restructuring is designed to increase accountability within each division and make it easier to spot areas that are not performing well.
HSBC’s move follows a similar restructuring by Barclays earlier this year. Barclays divided its operations into five business units, which its CEO, C.S. Venkatakrishnan, said would help the bank better understand how each division was performing.
For HSBC, this restructuring marks a significant effort to streamline operations, reduce costs, and focus on more efficient management practices as it continues to strengthen its global presence.
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