HSBC's Strategic Shake-Up: Cost-Cutting and Merger Plans Ahead
HSBC's CEO Georges Elhedery is considering cost-cutting measures targeting senior bankers, which could save up to $300 million. The plan involves potentially merging the lender’s commercial and investment banking units to reduce expenses. HSBC has been refocusing on Asian markets while scaling back in the West.
HSBC's CEO Georges Elhedery is evaluating various cost-cutting strategies that could save the bank up to $300 million. According to a recent Financial Times report, these measures will particularly target senior bankers within the organization.
Alongside these cost-cutting measures, HSBC is considering the merger of its commercial and investment banking units, a move aimed at addressing overlapping roles and reducing expenses. This strategy focuses on senior staff, as they represent a significant cost burden, according to insiders.
This development is part of HSBC's broader strategy to streamline operations and focus on Asian markets, where it has a strong presence, while scaling back in Western regions including the U.S., France, and Canada.
(With inputs from agencies.)