HSBC Holdings is preparing to commence job cuts within its investment bank as part of CEO Georges Elhedery’s ongoing restructuring efforts, reported Bloomberg, citing sources.
The reductions, beginning in Asia, will eventually impact employees worldwide.
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The exact number of affected individuals remains undisclosed.
According to sources, the initial phase of cuts is already underway in HSBC’s markets division, with broader layoffs across the investment bank set to begin as early as next week.
“As announced on October 2024, HSBC is focused on increasing leadership and market share in the areas where it has a clear competitive advantage and where it has the greatest opportunities to grow,” a bank representative was quoted by the publication as saying.
The redundancies will be staggered over several weeks and months, based on performance and to streamline operations, the sources added.
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By GlobalDataElhedery aims to reduce costs through restructuring, which has included merging the commercial banking division with the global banking and markets unit.
Additionally, HSBC is withdrawing from certain underwriting and advisory businesses in Europe and the Americas.
Since assuming leadership in September, Elhedery has reduced the size of the group executive committee by about one-third.
Bloomberg reported that reductions to senior staff are expected to affect over 40% of the top 175 managers.
HSBC aims to complete these moves by June.
The bank has announced it will provide further details on the restructuring scale when it releases its full-year results next week.
Last month, reports emerged that HSBC’s plan to wind down its M&A and equity capital markets businesses in Europe, the UK, and the US as part of a broader investment banking overhaul.
A spokesperson, as reported by CNBC, said: “As part of our ongoing efforts to simplify HSBC and increase leadership in our areas of strength, we are finalising a review of our Investment Banking business.
“We will retain more focused M&A and equity capital markets capabilities in Asia and the Middle East and will begin to wind-down our M&A and equity capital markets activities in the UK, Europe, and the US, subject to local legal requirements.”
