HSBC Holdings has ramped up cost-cutting efforts under CEO Georges Erhederi, aiming to save at least US$3 billion by June 2025, Bloomberg reports.
The initiative represents approximately 10% of HSBC’s projected annual spending of US$32.6 billion in 2023.
Analysts at Bloomberg Intelligence suggest that HSBC’s $19 billion annual wage bill is likely to be a key area for further cost reductions, forming a key part of the bank’s broader restructuring strategy. .
Details of the financial impact of the restructuring, including one-time costs, are expected to be revealed when the bank announces its full-year financial results in February.
Mr. Elhederi, who took office in September 2022, has already implemented significant changes to HSBC’s management and business structure.
The size of the group management committee will be reduced by about a third and more than 40% of the bank’s top 175 managers will be cut.
High-profile departures include Annabelle Spring, former global head of private banking; Celine Herweijer, Group Sustainability Officer;Steven Moss, Head of Middle East, North Africa, Turkiye; and Colin Bell, head of European operations.
Earlier this year, former head of wealth and personal banking Nuno Matos left to become CEO of ANZ Group Holdings.
As part of the restructuringHSBC is consolidating its commercial banking operations into its Global Banking and Markets division, spinning off its Hong Kong and UK operations into separate entities and launching a new Premier Banking and Wealth Management division.
Mr Elhederi said the changes were aimed at providing HSBC with a “clear competitive advantage and maximum growth opportunity”.
Featured image: Edited from HSBC
