HSBC is considering cost-cutting plans aimed at saving at least $3bn as it restructures its global operations, reported Bloomberg, citing sources.
The banking major informed managers last week that its restructuring would be completed by June 2025, sources said.
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HSBC’s total cost savings are still being determined, but executives aim to cut at least $3bn in expenses, they added.
If achieved, it would represents a 10% reduction in the bank’s estimated $32.6bn expense bill for this year.
The bank intends to detail the financial impact of these restructuring plans, including any one-time charges, alongside its full-year results in February.
A representative for HSBC declined to comment on the news.
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By GlobalDataSince taking over in September, Georges Elhedery has reduced the size of his executive committee by about one-third.
The restructuring is expected to reduce senior staff by over 40% of the company’s top 175 managers.
In announcing his recent management changes, Elhedery said: “The new structure will ensure we can better focus on the businesses where we have clear competitive advantage and the greatest opportunities to grow – and will help us to deliver best-in-class products and service excellence to our customers.”
Exits so far include Annabel Spring (global head of private banking), Celine Herweijer (group sustainability officer), Stephen Moss (head of MENA and Turkey) and Colin Bell (ran Europe).
Nuno Matos, Elhedery’s main rival for the CEO role, also departed and was recently named CEO of ANZ Group Holdings, one of Australia’s leading lender by assets.
Elhedery’s plan includes creating four new divisions: merging commercial banking with global banking and markets, separating Hong Kong and UK businesses, and forming a new premier banking and wealth unit.
Consolidating HSBC’s wealth- and investment-related operations is expected to provide focus and synergies, driving growth in wealth management and fee income.
