HSBC Holdings Plc’s incoming CEO, Georges El Hedery, is reportedly considering plans to streamline the bank’s operations by cutting layers of middle management. Bloomberg sauce.
El Hedery is preparing Take the helm On September 2, he was said to be considering cutting country head roles across HSBC’s global operations.
Additionally, the new CEO may reorganize management and change reporting lines, the people suggested.
While these discussions are at an early stage and may evolve, they underscore HSBC’s broader strategy to optimise costs in a changing economic climate.
An HSBC spokesman declined to comment on the incident.
Outgoing CEO Noel Quinn has already overseen a major restructuring of HSBC, including job cuts and the sale of key businesses in North America and Europe.
ElHedery’s planned cuts to middle management positions will be more in line with the bank’s current focus on efficiency and cost control.
As part of these efforts, he also announced plans in July to keep annual bonuses constant.
Similar efforts to reduce middle management are underway at Standard Chartered Bank and Citigroup, both of which are streamlining operations to become more efficient.
HSBC, which serves 41 million customers in 60 countries, is increasingly focusing its efforts on Asia, particularly Southeast Asia and China.
Bloomberg recently reported that the bank is in the process of selling its South African unit as part of this strategic shift.
