HSBC Holdings is asking hundreds of managers to reapply for their jobs at the new corporate and institutional banking (CIB) division, sources said. Bloomberg.
The mandate, part of CEO Georges Elhedery’s overhaul of the bank, aims to reduce costs and streamline operations across its massive global workforce of around 215,100 employees.
The restructuring has triggered a wave of internal competition, with top executives from the former commercial banking and global banking and markets units now competing for a smaller pool of positions within the consolidated CIB division.
Interviews are currently underway and insiders expect hundreds of chief executives and other senior executives to be laid off in the coming weeks.
Beyond job cuts, HSBC also removes the title “general manager,” moving these individuals to the more widely used title “chief executive officer.”
These changes are expected to be in place by February, when the bank plans to make its full restructuring plan public.
Elhedery, who unveiled his vision for a leaner HSBC on October 22, is under pressure to cope with the bank’s escalating operating expenses, which reached $8.1 billion last quarter.
Restructuring goes beyond personnel changes. HSBC is creating a new global leading wealth management and banking division and realigning its geographic operations in the Eastern and Western regions, with Hong Kong and the United Kingdom as units independent.
During an earnings conference call on October 29, Elhedery reassured investors that it was not a dismantling of the bankbut a simplification of its structure.
He acknowledged that senior management would be disproportionately affected by the job cuts, which he said would ultimately result in net savings.
Featured image credit: edited from Unsplash