HSBC's Strategic Overhaul: Cost-Cutting Moves and Management Reshuffle

HSBC CEO Georges Elhedery is considering cost-cutting measures to save $300 million by reducing top management layers. The bank may merge its commercial and investment units, affecting management roles. This move is part of an ongoing effort to streamline operations amid rising costs, particularly emphasizing Asian markets.

HSBC CEO Georges Elhedery is exploring significant cost-cutting measures that could potentially save the banking giant up to $300 million, as reported by the Financial Times.

The proposed strategy includes reducing top management layers, coinciding with a possible merger of HSBC's commercial and investment banking units, sources suggested. This merger aims to streamline operations, targeting senior positions for elimination, with an official announcement anticipated by the end of October.

Already Europe's largest lender, HSBC faces mounting costs, evidenced by its $16.3 billion expense in the first half of the year. Investors are increasingly worried about spending levels at major banks, pressuring executives to manage expenses more effectively. This move follows HSBC's trend of cutting roles in Western markets, focusing on Asia for growth.

(With inputs from agencies.)