HSBC asks hundreds of managers to reapply for jobs in bank revamp, sources say
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HSBC will start to lay off several hundred managing directors and other senior bankers in coming weeks, sources say.
PHOTO: REUTERS
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SINGAPORE/LONDON – HSBC Holdings has asked hundreds of managers to reapply for jobs in the firm’s newly formed corporate and institutional banking (CIB) division as chief executive officer Georges Elhedery continues his hunt for ways to make the bank run more efficiently.
Interviews are already under way, according to people familiar with the matter, essentially pitting senior staff from the commercial banking division against those from the global banking and markets unit to compete for the jobs available in the combined CIB division.
The process will result in the British bank beginning to dismiss several hundred managing directors and other senior bankers in the coming weeks, the people said, asking not to be identified discussing private deliberations.
As part of the shake-up, HSBC will phase out its use of the general manager titles that it gives to some of its most senior staff and will instead give those employees managing director titles, a common rank at many major financial services businesses, the people added.
No final decisions have been made and the plans could change, they said. A representative for London-based HSBC, which employs roughly 215,100 staff worldwide, declined to comment.
The latest job cuts – aimed at cost savings and telegraphed since the sweeping overhaul unveiled on Oct 22 by Mr Elhedery – come as the 159-year-old lender faces pressure on profit margins from a rate cutting cycle by monetary authorities around the world.
HSBC has reduced its headcount by more than 100,000 over the past 16 years as a series of CEOs tried to streamline the bank’s sprawling global operations.
Several belt-tightening measures have failed to contain HSBC’s operating expenditure, which rose slightly to US$8.1 billion (S$10.8 billion) in the last quarter, while the lender’s share performance in 2024 has lagged behind peers such as Barclays and Standard Chartered despite roughly US$35 billion in buybacks in the past 18 months.
Under the revamp, Mr Michael Roberts was appointed to lead the corporate and institutional banking division, while a new international wealth and premier banking business is being overseen by Mr Barry O’Byrne.
Mr Roberts told Bloomberg Television earlier in November that the restructuring will be done in a “thoughtful way” and the new management structure would be in place by February, when the company is set to share the full details.
The lender will also see changes to its geographical divisions.
It will have an Eastern regional unit including Asia-Pacific and the Middle East, and a Western market that includes its non-ringfenced bank in Britain, Europe and the Americas. Hong Kong and Britain will be standalone units.
In an earnings call with investors on Oct 29, Mr Elhedery emphasised that his restructuring plan is not about splitting up the bank but rather about simplification of its operations.
He warned that senior managers would be the main targets of any related job losses, adding the move would result in net cost savings. BLOOMBERG
