HSBC to Restructure, Cutting Top Management to Save $300 Million

CEO Georges Elhedery plans to merge commercial and investment banking units, targeting senior roles for cost reduction.

HSBC's new CEO, Georges Elhedery, is initiating a merger of the bank's commercial and investment banking divisions to streamline operations.
The restructuring aims to eliminate duplicate senior management roles, targeting $300 million in annual savings.
HSBC's cost-saving plan is part of a broader strategy to adapt to changing economic conditions and declining net interest income.
An official announcement regarding the restructuring is expected by the end of October, though details have not been shared with staff yet.
Despite the planned cuts, HSBC recently reported strong financial performance, including a $21.6 billion pre-tax profit for the first half of 2024.