By Sinead Cruise
LONDON (Reuters) – Some senior HSBC staff should prepare for potential job cuts following the bank’s recent restructuring, as stated by Chief Executive Georges Elhedery in a memo seen by Reuters on Wednesday.
“Inevitably, some of our colleagues will face redundancies as we streamline duplicative senior roles,” Elhedery mentioned in the memo after unveiling one of the bank’s most significant overhauls in recent years.
The bank announced on Tuesday that it would consolidate certain operations and divide its geographic presence into East and West, as part of Elhedery’s efforts to eliminate redundant management positions and reduce expenses at the Asia-focused institution.
A bank spokesperson verified the memo’s contents but refrained from providing further comments. Bloomberg News initially reported on the memo.
“The leadership team will be available to discuss these changes in more depth with you in the upcoming days and address any questions you may have,” Elhedery assured the staff.
HSBC has separated its operations into four key business divisions, including UK, Hong Kong, corporate and institutional banking, and wealth banking.
According to Morningstar analyst Michael Makdad, these adjustments should “enhance accountability for each business unit, making underperforming areas more evident.”
This reorganization mirrors a similar move made by Barclays earlier this year, which segmented its operations into five units to provide clearer insights into individual performance, as CEO C.S. Venkatakrishnan explained.