HSBC To Reduce Banking Jobs Worldwide In New Plan
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HSBC Holdings Plc is preparing to cut jobs in its investment banking division. This is part of a long-term plan to organize work more efficiently and lower expenses. Georges Elhedery, who became the leader in September 2024, is guiding these changes. Asia will see the first round of job cuts on Monday, with further reductions taking place globally in the weeks and months ahead.
When Elhedery became HSBC’s leader, he worked to lower costs. He said the company gave him permission to bring the commercial banking division and the global banking and markets unit together. He has also decided to stop some underwriting and advisory services in Europe and the Americas. Additionally, he has reduced the size of his executive committee by one-third.
40% Of HSBC’s Top 175 Managers Could Be Affected By The New Changes
A report from December showed that about 40% of HSBC’s top 175 managers would be affected by these leadership changes. The changes are expected to end by June. The bank said these steps will help it grow in the top places.
HSBC’s spokesperson said the bank is improving its leadership and growing in the market. He also said HSBC will focus on areas where it can do best. This news was first given in October last year when HSBC shared its plans.
Experts expect the bank to announce a pre-tax income of $31.7 billion for 2024, which is 4.6% higher than the previous year. On Thursday morning, HSBC’s stock increased by 0.5% in Hong Kong trading, reaching its highest level in seven years.
HSBC has chosen to do less underwriting and advising outside Asia and the Middle East. This worries workers in Asia because they might lose jobs linked to deals between Asia, Europe, and the US. Some employees have already moved to other banks for job security.
Employees Worry About HSBC’s Future In US Listings Of Chinese Businesses
Workers are concerned that HSBC may lose its role in US listings of Chinese companies. They also fear that other banks could take over HSBC’s work in global deals. This has left many employees unsure about what will happen next.
Veteran dealmaker Matthew Ginsburg tried to ease worries at HSBC. He said Asia will see changes but will stay important to the bank. He also told employees that HSBC’s good financial health will help it continue doing important deals.
HSBC’s management has encouraged employees to view the bank’s future in a new way. They suggested that HSBC could function as a specialized dealmaker by using its strong financial foundation. They also believe the bank’s relationships with corporate and institutional clients in the West will continue to help secure deals in Asia and the Middle East.
