It aims to complete restructuring process "as quickly as possible"
HSBC Holdings plans to accelerate its ongoing restructuring, with initial job cuts likely to be announced within weeks, according to one of the bank’s executives.
In an interview with Bloomberg Television, Michael Roberts, head of the HSBC’s newly formed global wholesale banking division, confirmed that senior-level positions will be most affected as the lender seeks to streamline its operations.
Roberts explained that HSBC’s approach to restructuring would be “thoughtful” but rapid, acknowledging the disruptions such changes can bring.
“We are very much aware that this is distracting and disruptive, so we aim to complete this process as quickly as possible,” Roberts was quoted as saying in a Bloomberg report. “I’m talking weeks before we announce the first level followed by several other weeks.”
Michael Roberts, head of HSBC's new global wholesale banking division, says the lender will seek to wrap up an ongoing restructuring “very quickly” and could announce the first round of job cuts within weeks https://t.co/bb1CmFQ7fF pic.twitter.com/a1DBnWFUcQ
— Bloomberg TV (@BloombergTV) November 7, 2024
The restructuring comes under the leadership of new group chief executive Georges Elhedery, who announced the plan last month. Roberts indicated that more details, including the total number of jobs to be cut, are expected to be disclosed around the time of HSBC’s full-year results in February.
Britain’s largest bank is undertaking a significant overhaul that includes merging its global commercial and institutional banking units under Roberts’ supervision. Additionally, it is establishing a new international wealth and premier banking division, which will be managed by Barry O’Byrne. Roberts, who has led HSBC’s operations in the US and the Americas since joining from Citigroup five years ago, will relocate from New York to London in January to take on his expanded role.
HSBC’s cost-cutting initiatives are part of a larger plan to manage shrinking profits as falling interest rates start to pressure its revenues. Though the bank has recently gained from a period of higher rates, the current trend toward lower rates could pose risks to its earnings. The consolidation is intended to streamline operations and improve efficiency — a critical step for a bank with a global workforce of 214,000.
Elhedery, who took over as CEO in September, has previously stressed that the restructuring is primarily about simplifying HSBC’s operations rather than merely cutting costs. However, he did warn that job reductions would be inevitable.
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