HSBC is reportedly trimming its workforce size at Pinnacle, the bank’s digital wealth business in China, by nearly half, affecting around 900 employees.
The downsizing will be done through layoffs, natural attrition, and reassignments within HSBC’s operations in China, reported Reuters citing sources.
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Georges Elhedery, the CEO of the London-based bank, has initiated a comprehensive restructuring plan that includes job cuts to lower long-term expenses and raise profits.
Pinnacle, established in 2020, offers insurance and investment products through a digital platform and had around 2,100 employees across its main divisions as of June 2024.
An earlier report by Reuters in October 2024 disclosed that HSBC had begun examining employee compensation and supplier expenses, which had led to an increase in costs that surpassed revenue at Pinnacle.
The bank is preparing to axe approximately 100 employees from Pinnacle’s fintech branch and reassign a further 300 to different business units, such as retail banking.
While the exact numbers are still under discussion, HSBC has not directly commented on the move.
It plans to continue investing in premier and global private banking, insurance, and asset management within the mainland China market.
In 2024, HSBC reported a 61% growth in wealth invested assets in mainland China compared to the previous year.
HSBC’s decision to scale back its China digital wealth business contrasts with its strategy to focus on wealth management and the Asian market.
Pinnacle was part of HSBC’s $6bn investment in Asia announced in 2021, aiming to extend the bank’s reach in China through digital means, with a goal to hire 3,000 wealth managers by 2025.
In January this year, Delta Capita signed a long-term deal with HSBC to provide global OTC derivatives confirmation and settlement services. Delta Capita also opened new hubs in Kuala Lumpur and Manila to support this alliance.
