HSBC asks managers to reapply for jobs in global cost-cutting drive
HSBC is forcing managers in its newly formed corporate and institutional banking arm to reapply for their jobs as part of a sweeping cost-cutting drive, according to reports.
Hundreds of managers have been asked to interview for their roles as the lender merges its corporate and investment banking businesses in a seeping restructuring plan, unveiled by new chief Georges Elhedery last month, Bloomberg reported.
Bloomberg reported, citing people familiar with the matter, that the interview process could result in the dismissal of several hundred managing directors and other senior bankers.
General manager titles will also be phased out as part of the shake-up, and staff will be given managing director titles instead. The plans are not reportedly final and could change.
HSBC declined to comment.
The move comes as part of a wider shake-up of HSBC’s structure and as its new chief executive looks to tighten its swollen cost base.
Rate cuts by central banks have begun to squeeze profit margins at big banks after a period of record-breaking earnings last year. The London-listed bank posted a record pre-tax profit of $30.3bn (£24bn) in 2023, an 80 per cent jump on the previous year, fuelled by high interest rates.
However, HSBC’s costs have continued to climb and topped $8.1bn last quarter.
Elhedery is looking to bolster its wealth management business as part of an effort to push into areas less sensitive to interest rates. It is said to be plotting a major recruitment drive in the UK with the aim of doubling its assets under management to £100bn over the next five years.
As part of its overhaul, HSBC will more clearly separate its Asian and Western markets, a move seen as an attempt to avoid growing tensions between China and the West.
An Eastern regional unit will oversee its Asia Pacific and Middle Eastern operations, while a Western unit will oversee its Europe and American divisions. The Hong Kong and UK banks will operate as individual entities.