market

HSBC bankers told to reapply for jobs with hundreds facing the axe in major overhaul


HSBC is preparing to axe hundreds of senior bankers over the coming weeks as part of a sweeping overhaul by boss Georges Elhedery.

The cost-cutting move – in the run-up to Christmas – will see managers asked to reapply for roles in the bank’s newly formed corporate and institutional banking unit.

It will reportedly mean employees from HSBC’s commercial banking division competing for the positions against those from the global banking and markets unit.

Shake-up: Boss Georges Elhedery (pictured) is splitting HSBC into four divisions: Hong Kong; UK; corporate and institutional banking; and international wealth and premier banking

Shake-up: Boss Georges Elhedery (pictured) is splitting HSBC into four divisions: Hong Kong; UK; corporate and institutional banking; and international wealth and premier banking

The interviews for the roles are already underway, Bloomberg News reported. HSBC declined to comment.

The bank employs more than 30,000 staff in the UK and over 200,000 worldwide.

Elhedery’s predecessor Noel Quinn had already axed tens of thousands of jobs across the group during five years in charge. 

His Lebanese-born successor took over in September, and last month he announced plans to ‘simplify’ the sprawling bank.

Readers Also Like:  MAGGIE PAGANO: Women's Bountiful Game

Under Elhedery’s restructuring plan, HSBC will be organised into four divisions: Hong Kong; UK; corporate and institutional banking; and international wealth and premier banking.

Businesses within the latter two divisions will fall between eastern markets, including Asia and the Middle East, and western markets, including the UK, Europe and the Americas.

Elhedery, 50, warned staff there would ‘inevitably be a reduction in duplicated roles, particularly at senior levels’. Reports have suggested the cuts could save more than £200million.

Elhedery has said his shake-up would result in a ‘simpler, more dynamic and agile organisation’. 

The bank said it would ‘reduce the duplication of processes and decision making’ that are built into the current structure.

Some investors want the restructuring to go further, severing the bank’s operations in Asia entirely from its business in the UK and the rest of the world.

A number of top level HSBC executives are already departing, including Nuno Matos, head of wealth and personal banking, who missed out on the top job.

HSBC was founded in Hong Kong and still makes most of its profits in Asia but increasingly strained relations between the West and China’s repressive Communist regime have created challenges for the bank.

DIY INVESTING PLATFORMS

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

AJ Bell

Easy investing and ready-made portfolios

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Hargreaves Lansdown

Free fund dealing and investment ideas

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

interactive investor

Flat-fee investing from £4.99 per month

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Saxo

Get £200 back in trading fees

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Trading 212

Free dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Readers Also Like:  SMALL CAP MOVERS: California dreams come true for Eden Research

Compare the best investing account for you





READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.