HSBC Holdings is requiring hundreds of managers to reapply for their jobs within the newly established corporate and institutional banking (CIB) division, sources told Bloomberg.
This mandate, part of CEO Georges Elhedery’s overhaul of the bank, is designed to reduce costs and streamline operations across its massive global workforce of roughly 215,100 employees.
The restructuring has set off a wave of internal competition, with senior executives from the former commercial banking and global banking and markets units now vying for a smaller pool of positions within the consolidated CIB division.
Interviews are currently being conducted, and insiders anticipate that hundreds of managing directors and other high-ranking staff will be let go in the coming weeks.
Beyond the job cuts, HSBC is also eliminating the “general manager” title, transitioning those individuals to the more widely used “managing director” designation.
These changes are expected to be in place by February, when the bank plans to publicly disclose the full scope of its restructuring plan.
Elhedery, who unveiled his vision for a leaner HSBC on 22 October, is under pressure to address the bank’s escalating operating expenses, which hit US$8.1 billion last quarter.
The restructuring goes beyond personnel changes. HSBC is establishing a new international wealth and premier banking division and realigning its geographical operations into Eastern and Western regions, with Hong Kong and the UK as independent units.
In an earnings call on October 29, Elhedery reassured investors that this was not a dismantling of the bank, but a simplification of its structure.
He acknowledged that senior management would be disproportionately affected by the job cuts, which he maintained would ultimately deliver net cost savings.
Featured image credit: Edited from Unsplash
