HSBC is reportedly making managers in its newly consolidated corporate and institutional banking division reapply for their positions as part of a comprehensive cost-cutting initiative.
As Bloomberg reports, the move comes as the bank merges its corporate and investment banking sectors under a broad restructuring plan announced by new CEO Georges Elhedery last month, as reported by .
The interview process could potentially lead to the dismissal of several hundred managing directors and other high-ranking bankers, according to sources familiar with the matter.
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As part of the reshuffle, general manager titles will be phased out, with staff receiving managing director titles instead. However, these plans are not yet finalised and may be subject to change.
HSBC has declined to comment on the matter.
This development is part of a larger overhaul of HSBC's structure as the new CEO aims to rein in the bank's bloated cost base.
Profit margins at major banks have started to feel the pinch from central bank rate cuts, following a period of record-breaking earnings last year. The London-based bank reported a record pre-tax profit of $30.3bn (£24bn) in 2023, an impressive 80% increase from the previous year, driven by high interest rates.
Despite this, HSBC's costs have continued to rise, reaching over $8.1bn in the last quarter.
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Elhedery is reportedly planning to strengthen HSBC's wealth management sector as part of a strategy to venture into areas less impacted by interest rates. The bank is said to be preparing for a significant recruitment drive in the 海角视频, with an ambitious goal of doubling its assets under management to £100bn within the next five years.
As part of this restructuring, HSBC plans to distinctly separate its Asian and Western markets, a move perceived as an attempt to navigate the escalating tensions between China and the West.
The bank will establish an Eastern regional unit to manage its Asia Pacific and Middle Eastern operations, while a Western unit will oversee its European and American divisions. The Hong Kong and 海角视频 banks will function as independent entities.