HSBC Holdings is asking hundreds of managers to reapply for its newly created corporate and institutional banking (CIB) division, people familiar with the matter said. bloomberg.
The role is part of an overhaul of the bank by CEO Georges Ergederi, with the aim of cutting costs and streamlining operations across its huge global workforce of approximately 215,100 employees. There is.
The restructuring has triggered a wave of internal competition, with senior executives from the former Commercial Banking and Global Banking and Markets divisions now competing for a small number of positions within the combined CIB division.
Interviews are currently underway, and insiders expect hundreds of managing directors and other senior staff to be let go within weeks.
Beyond layoffs, HSBC We are also eliminating the title “General Manager” and transitioning these individuals to the more widely used title of “Managing Director.”
These changes are expected to be implemented by February, and the bank plans to publish the full scope of its restructuring plan.
Mr Elhederi announced his vision for slimming down HSBC on October 22, but is under pressure to address rising operating costs at the bank, which reached US$8.1 billion last quarter.
Restructuring is more than just personnel changes. HSBC is establishing a new International Wealth Premier Banking division and reorganizing its geographical operations into eastern and western regions, with Hong Kong and the UK as separate divisions.
At an October 29th earnings conference call, El-Hedery reassured investors that this was true. It’s not bank dissolution.but its structure is simplified.
He acknowledged that senior management would be disproportionately affected by job cuts, which he argued would ultimately result in net cost savings.
Featured image credit: Edited from unsplash
