HSBC Holdings is preparing to reduce its senior management roles as part of an extensive restructuring effort aimed at cutting costs, as reported by Bloomberg.

CEO Georges Elhedery informed staff of the upcoming changes in an internal memo, indicating that the bank’s consolidation of business operations would lead to a reduction in duplicated roles, particularly at higher levels.

The announcement comes as HSBC embarks on a major overhaul across its global business lines and regions.

According to a source familiar with the matter, the restructuring will impact senior management positions while attempting to minimise disruption to front-line, customer-facing roles.

Under the new structure, HSBC plans to merge its global commercial and institutional banking divisions, placing them under the leadership of Michael Roberts.

The bank is also reorganising geographically, with an Eastern unit covering Asia Pacific and the Middle East and a Western unit overseeing the UK, Europe, and the Americas.

Meanwhile, its Hong Kong and the UK will now operate as standalone units.

The reshuffling of senior roles has already led to key executive departures, including Stephen Moss, who managed the Middle East and North Africa, and Colin Bell, who oversaw European operations.

The number of executives on HSBC’s newly established key operating committee will be reduced from 18 to 12 as part of the restructuring.

HSBC has not yet commented on the internal changes, which have left some employees uncertain about their future within the new organizational structure.

The restructuring marks one of Elhedery’s most significant moves since assuming his role as CEO, as he works to streamline the bank’s operations and reduce costs amid challenging global market conditions.

HSBC has yet to release further details on the financial implications of the changes, with more information expected during its full-year results in February.