HSBC is evaluating a cost-cutting strategy that could save up to US$300 million by streamlining senior management, according to a report by the Financial Times on Thursday.
The plan comes as the bank explores the merger of its commercial and investment banking units, a move expected to eliminate some top management roles, the FT reported, citing unnamed sources familiar with the matter.
An official announcement is anticipated by the end of October.
The proposed changes coincide with the recent appointment of Georges Elhedery as Group CEO, following Noel Quinn’s departure, as HSBC continues to navigate strategic adjustments under new leadership.
HSBC employs approximately 214,000 people worldwide and has been working to reduce redundancies within its management structure to control expenses.
The potential savings, while significant, would represent a small portion of the bank’s overall expenses, which reached US$16.3 billion in the first half of 2024, up 5% from the same period last year.
Rising costs have increasingly concerned investors, with major banks facing pressure to manage expenses more efficiently.
Last month, Bloomberg reported that HSBC was considering combining its commercial and investment banking divisions to cut overlapping roles and reduce costs.
In recent years, HSBC has also been reducing its presence in Western markets like the U.S., France, and Canada, shifting focus toward Asia and markets where it has a stronger foothold.
Featured image: Edited from HSBC