HSBC is set to reduce senior roles as part of a major restructuring effort, according to a memo sent to staff by Chief Executive Georges Elhedery.
The announcement was made in a memo sent on Wednesday, which was seen by Reuters. The move is aimed at streamlining the bank’s operations and cutting costs by eliminating redundant management positions.
Streamlining Leadership
Elhedery told staff some would face redundancies due to the removal of overlapping senior roles.
The bank’s recent restructuring represents one of its most significant overhauls in years.
HSBC announced plans to merge several operations and reorganize its geographical footprint into two main regions: East and West. The goal is to simplify management layers and improve operational efficiency.
A spokesperson confirmed the memo’s contents but did not provide additional details.
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Focus on Communication
Elhedery reassured staff more information about the changes would be provided in the coming days.
His memo said:
“The leadership team will spend more time with you to explain these changes in more detail and to give you the opportunity to ask questions.”
The bank’s operations have been divided into four main lines of business: UK, Hong Kong, corporate and institutional banking, and wealth management.
This restructuring is expected to bring more accountability to each sector and make it easier to identify and address underperforming areas.
Following Industry Trends
HSBC’s restructuring mirrors a similar move by Barclays earlier in the year.
Barclays split its business into five units, which CEO CS Venkatakrishnan said would help clarify performance across divisions.
Morningstar analyst Michael Makdad said HSBC’s changes will offer similar benefits, allowing the bank to pinpoint and resolve inefficiencies more effectively.
Looking Ahead
As HSBC moves forward with its new structure, the focus will be on maintaining transparency and efficiency across its divisions. With more clarity on performance and accountability, the bank hopes to strengthen its position and cut unnecessary costs, following a trend seen in other major financial institutions.
