HSBC Holdings plc's (NYSE: HSBC) incoming chief executive officer, Georges Elhedery, is considering a significant organizational transformation intended to streamline the company's operations, according to a Bloomberg report. After taking over as the new CEO on Sept. 2, Elhedery will mull plans that could include cutting layers of middle management and reducing the number of country heads across HSBC's global footprint.
These anticipated job cuts align with HSBC's ongoing focus on improving efficiency and cost control amid evolving economic challenges.
This approach is similar to the approach followed by other banks, including Barclays PLC (NYSE: BCS) and Standard Chartered PLC (OTC: SCBFF), which have trimmed middle management as part of larger cost-cutting programs.
In May 2024, BCS commenced job cuts across investment banking (IB) and research division, per people familiar with the matter. This move aligns with BCS' £2 billion cost-cutting program to boost profitability. In June 2023, SCBFF started laying off employees in Singapore, Hong Kong and London to reduce costs by more than $1 billion between 2022 and 2024.
As the ...
