HSBC has confirmed plans to cut jobs worldwide as part of an effort to reduce costs by \u00a31.2 billion by the end of 2026<\/strong>. The banking giant said the cuts would primarily impact senior management and staff within its newly restructured corporate and institutional division, with the UK head office expected to bear a significant portion of the reductions.<\/p>\n\n\n\n
The decision to reduce global staff costs by 8%<\/strong> comes amid a broader restructuring aimed at simplifying the bank<\/a>\u2019s operations and focusing on its most profitable areas. HSBC <\/a>has merged two of its three main divisions, eliminating layers of senior management, and withdrawn from mergers and acquisitions banking activities in the UK, Europe, and the US.<\/p>\n\n\n\n
According to HSBC\u2019s chief executive Georges Elhedery<\/a><\/strong>, the job cuts are not being tracked as a specific reduction in headcount but as part of an overall strategy to lower expenses. \u201cWe are creating a simple, more agile, focused bank built on our core strengths,\u201d he stated.<\/p>\n\n\n\n
Despite the cost-cutting measures, HSBC reported strong financial results for 2024. Pre-tax profits rose by 6.6% to \u00a325.6 billion<\/strong>, up from \u00a324.1 billion<\/strong> in 2023. Revenue remained steady at \u00a352.2 billion<\/strong>, while operating expenses increased by \u00a3793 million<\/strong>, according to the bank\u2019s annual report.<\/p>\n\n\n\n
At the same time, HSBC has proposed a significant pay increase for Georges Elhedery<\/strong>, with his total remuneration package set to rise to a potential maximum of \u00a315.2 million<\/strong> in 2025. The bank also maintained its bonus pool at \u00a33.01 billion<\/strong> for 2024, slightly higher than the previous year\u2019s \u00a32.99 billion.<\/p>\n\n\n\n
Elhedery highlighted the importance of cost control while ensuring the bank remains competitive. \u201cI have put in place a smaller, core team<\/strong> of exceptionally talented leaders driven by a growth-orientated mindset and a firm focus on dynamically managing our costs and capital,\u201d he said.<\/p>\n\n\n\n
Efficiency and long-term profitability are now HSBC’s top priorities, marking a dramatic change in the company’s global strategy. It is unclear how these cost-cutting initiatives<\/strong> would affect staff and market positioning as the banking industry develops further.<\/p>\n","protected":false},"excerpt":{"rendered":"
HSBC has unveiled a global job reduction plan, aiming to cut costs by \u00a31.2 billion by 2026. Senior roles and UK operations are expected to take the hardest hit, while the bank restructures its divisions. Meanwhile, profits remain strong, and executive pay is set to rise. <\/p>\n","protected":false},"author":10,"featured_media":104463,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-104459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=104459"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104459\/revisions"}],"predecessor-version":[{"id":104464,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/104459\/revisions\/104464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/104463"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=104459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=104459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=104459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}