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HSBC is preparing to lay off hundreds of senior bankers in the coming weeks as part of a sweeping overhaul carried out by its boss Georges Elhedery.
The cost-cutting move – in the run-up to Christmas – will see managers asked to reapply for roles in the bank’s newly formed corporate and institutional banking unit.
This will reportedly mean employees in HSBC’s commercial banking division will compete for jobs against those in the global banking and markets unit.
Reorganization: Boss Georges Elhedery (pictured) is splitting HSBC into four divisions: Hong Kong; United Kingdom; corporate and institutional banking; and international wealth and top-tier banking.
Interviews for the roles are already underway, Bloomberg News reported. HSBC declined to comment.
The bank employs more than 30,000 people in the UK and more than 200,000 worldwide.
Elhedery’s predecessor, Noel Quinn, had already cut tens of thousands of jobs across the group during five years in charge.
His Lebanese-born successor took over in September and last month announced plans to “simplify” the expanding bank.
Under Elhedery’s restructuring plan, HSBC will be organized into four divisions: Hong Kong; United Kingdom; corporate and institutional banking; and international wealth and top-tier banking.
Businesses within the latter two divisions will be located between eastern markets, including Asia and the Middle East, and western markets, including the UK, Europe and the Americas.
Mr Elhedery, 50, warned staff that “there would inevitably be a reduction in duplicative roles, particularly at senior levels”. Reports have suggested the cuts could save more than £200 million.
Elhedery has said his restructuring would result in a “simpler, more dynamic and agile organization.”
The bank said it would “reduce duplication of processes and decision-making” that are built into the current structure.
Some investors want the restructuring to go further, completely separating the bank’s operations in Asia from its businesses in the UK and the rest of the world.
Several senior HSBC executives are already leaving, including Nuno Matos, head of personal and wealth banking, who missed out on the top job.
HSBC was founded in Hong Kong and still makes most of its profits in Asia, but increasingly strained relations between the West and China’s repressive communist regime have created challenges for the bank.
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