This would represent a roughly 10% cut in the bank’s expense bill, which this year is estimated to come in at around $32.6 billion according to figures compiled by Bloomberg. The bank is expected to provide details of the financial impact of its restructuring plans, including a one-time charge tied to that work, alongside its full-year results in February.
A spokesperson for HSBC declined to comment.
Since taking charge in September, Elhedery has already cut the size of his own group executive committee by about a third. Reductions to senior staffers are expected to axe a little over 40% of the company’s top 175 managers, according to one person, who asked not to be identified discussing the situation.
Announcing his latest management changes last week, Elhedery said the new structure would provide the company with a “clear competitive advantage and the greatest opportunity to grow.”
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So far, exits include Annabel Spring, global head of private banking, Celine Herweijer, group sustainability officer, Stephen Moss, head of the Middle East, North Africa and Turkiye, and Colin Bell, who ran the bank in Europe. Another departure this year was Nuno Matos, who ran wealth and personal banking and was Elhedery’s main rival for the CEO role.
This week, Matos was named the next CEO of Australia’s second-largest lender by assets ANZ Group Holdings Ltd.
At the heart of Elhedery’s plan is the creation of four new divisions. HSBC is merging commercial banking into global banking and markets, while also hiving off its Hong Kong and UK businesses into standalone entities, and creating a new premier banking and wealth unit.
Bloomberg Intelligence analysts said this month that they expect HSBC’s cost-cutting to be “dialled up” to provide a greater boost to profits. In particular, the analysts are expecting to see more cuts to the bank’s $19 billion annual wage bill, which makes up the bulk of its expenses.
