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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.

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Georges Elhedery was appointed chief executive at Europe’s biggest bank in September

Overview

  • 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.