HSBC Holdings has launched a major restructuring initiative under CEO Georges Elhedery to streamline its operations and improve overall efficiency. The bank has instructed hundreds of managers to reapply for positions in its newly created corporate and institutional banking division. This restructuring process, which is currently underway, is expected to result in the dismissal of several hundred senior bankers and managing directors.
The restructuring will consolidate HSBC’s commercial banking division and global banking and markets unit into one cohesive entity. In a move to standardize roles, the bank also plans to retire its general manager titles for senior staff, replacing them with managing director titles, a more common designation in the financial industry.
The restructuring comes as part of a broader cost-saving strategy that has been in the works since Elhedery’s appointment in October. HSBC is facing mounting pressures on profit margins due to global interest rate cuts, and despite share buybacks, the bank’s stock performance has underperformed compared to rivals like Barclays and Standard Chartered.
As part of the overhaul, Michael Roberts has been appointed to lead the newly integrated division, while Barry O’Byrne will oversee the International Wealth and Premier Banking business. The restructuring is set to be completed by February 2025, with the bank aiming to achieve significant net cost savings.
