The big restructuring begins: The largest European bank announces massive job cuts
HSBC chief executive Georges Elhedery is considering cutting the number of senior bankers at the bank as part of a restructuring plan aimed at saving $300 million, according to sources close to the situation.
The big restructuring begins: The largest European bank announces massive job cuts
Elhedery plans to merge HSBC’s commercial banking division with the global banking and markets division in the first major cost-cutting measures since he took office last month, writes the Financial Times, quoted by ZF.
For now, the staff has not received details about these plans, but it seems that preparations are at an advanced stage, and the official announcement is expected by the end of October. Target savings could be adjusted as the bank finalizes its analysis of the figures.
“The merger will reduce top management levels,” one of the sources said. “It will affect management positions and some of the more important functions. This is the most expensive level, where most of the expenses are concentrated.”
HSBC has benefited significantly from rising interest rates in recent years, but now faces a possible fall in profits as interest rates begin to fall. The aim of the restructuring is to eliminate redundancies in the management of the bank, which has 214,000 employees.
One option under consideration is for Surendra Rosha, co-chief executive of HSBC’s Asia-Pacific division, to take charge of both the commercial and global divisions, while Patrick George, global head of securities markets and services, continues to manage the markets division. Rosha joined HSBC in 1991 as a trainee, having previously held the position of Executive Director of India Operations.
Barry O’Byrne, who led the commercial banking division, has been moved to head HSBC’s personal and wealth banking division, with no permanent replacement yet named. Greg Guyett has been responsible for the global markets and services division since October 2022.
Source: www.mediafax.ro
