HSBC’s incoming CEO, Georges Elhedery, is reportedly contemplating measures such as eliminating layers of middle management in an effort to streamline Europe’s largest bank. According to Bloomberg News, Elhedery is considering plans that could involve reducing the number of country heads across HSBC’s global network.
The London-based finance chief is set to succeed Noel Quinn as CEO on 2 September. It has also been suggested that Elhedery is likely to make changes to the executives and roles reporting to him once he assumes his new position.
These discussions are still in their early stages, and any plans for streamlining HSBC’s operations are subject to change. HSBC declined to comment when approached by City AM.
This news comes as central banks worldwide start to cut interest rates, with further easing of monetary policy expected in the coming months. This presents lenders with the prospect of tighter margins and reduced profits, as reported by City AM.
Over the past few years, banks globally have seen their profits boosted by the rise in global interest rates, with HSBC recording a record annual profit in 2023 and announcing £26bn ($34.4bn) in investor payouts over the last 18 months. Quinn’s tenure was characterised by efforts to enhance shareholder returns through cost reduction and streamlining the bank, including exiting non-core markets and cutting thousands of jobs.
Earlier in the summer, it was reported that HSBC had put a brake on recruitment and urged its bankers to cut back on expenses.
This mirrors similar strategies adopted by competitors Standard Chartered and Citigroup, with the former announcing in March plans to reduce its local management team.
Citigroup’s CEO, Jane Fraser, is also implementing a significant restructuring plan, which includes eliminating five tiers of management and tens of thousands of jobs.
Like this story? Why not sign up to get the latest business news straight to your inbox.Story Saved
You can find this story in My Bookmarks.Or by navigating to the user icon in the top right.