HSBC to sack hundreds of managers in shake-up - report
By Michele Maatouk
Date: Monday 18 Nov 2024
(Sharecast News) - HSBC Holdings has reportedly asked hundreds of managers to reapply for jobs in the firm's newly-formed corporate and institutional banking division as chief executive Georges Elhedery continues his hunt for ways to make the bank run more efficiently.
Bloomberg cited people familiar with the matter as saying that interviews are already underway, essentially pitting senior staff who came from the commercial banking division against those from the global banking and markets unit to compete for the jobs available in the combined CIB division.
Sources said the process will result in the bank beginning to dismiss several hundred managing directors and other senior bankers in the coming weeks.
It was understood that as part of the shake-up, HSBC will phase out its use of the general manager titles that it gives to some of its most senior staff and will instead give those employees managing director titles, a common rank at many major financial services businesses.
No final decisions have been made and the plans could change, sources told Bloomberg.
A representative for HSBC declined to comment to Bloomberg.
The latest job cuts - aimed at cost savings and long telegraphed since the sweeping overhaul unveiled on 22 October by Elhedery - come as the lender faces pressure on profit margins from a rate-cutting cycle by monetary authorities around the world. HSBC has reduced its headcount by more than 100,000 over the past 16 years as a series of CEOs tried to streamline the bank's sprawling global operations.
Several belt-tightening measures have failed to contain HSBC's operating expenditure, which rose slightly to $8.1bn last quarter, while the lender's share performance this year has lagged behind peers such as Barclays and Standard Chartered despite roughly $35bn in buybacks in the past 18 months.
Under the revamp, Michael Roberts was appointed to lead the corporate and institutional banking division, while a new international wealth and premier banking business is being overseen by Barry O'Byrne.
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