HSBC to Lay Off Hundreds of Top Bankers to Achieve Cost Efficiency

Zacks11-19

HSBC Holdings PLC HSBC plans to reduce its workforce by removing hundreds of top bankers to lower costs as part of its efforts to streamline the vast organization. This was first reported by Bloomberg...

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This was first reported by Bloomberg...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-lay-off-hundreds-top-143500923.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_sg","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HSBC to Lay Off Hundreds of Top Bankers to Achieve Cost Efficiency</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHSBC to Lay Off Hundreds of Top Bankers to Achieve Cost Efficiency\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-19 22:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/hsbc-lay-off-hundreds-top-143500923.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>HSBC Holdings PLC HSBC plans to reduce its workforce by removing hundreds of top bankers to lower costs as part of its efforts to streamline the vast organization. This was first reported by Bloomberg...</p>\n\n<a href=\"https://finance.yahoo.com/news/hsbc-lay-off-hundreds-top-143500923.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4207","symbol_name":"综合性银行","start_time":0,"source_url":"https://finance.yahoo.com/news/hsbc-lay-off-hundreds-top-143500923.html","article_id":"2484921821","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/yM2AAyXrqTaXtKtrw4bnvQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/59744b4fcca70e73cbe3b535b1bc283a"],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/hsbc-lay-off-hundreds-top-143500923.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2484921821","pubTimestamp":1732026900,"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"HSBC Holdings PLC HSBC plans to reduce its workforce by removing hundreds of top bankers to lower costs as part of its efforts to streamline the vast organization. This was first reported by Bloomberg.Numerous managers in HSBC’s recently established Corporate and Institutional Banking  division have been told to apply again for their jobs, with interviews already under the way.This process effectively puts senior staff from the corporate banking division in competition with those in the global banking and markets unit. As part of the revamp, HSBC will stop the use of general manager titles and will offer senior staff managing director titles instead.This revamp is part of the initiative orchestrated by the new CEO of HSBC, Georges Elhedery, who aims to achieve $300 million  in cost-savings.From January 2025, HSBC will split its operations geographically between Eastern and Western markets. Further, the company will restructure its four distinct business lines, one of which is the CIB d","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4207":"综合性银行","BK4211":"区域性银行","BK6112":"综合性银行","DB":"德意志银行","BK4585":"ETF&股票定投概念","BK4521":"英国银行股","CIB":"哥伦比亚银行","BK4588":"碎股","FULT":"富尔顿金融","LU2236285917.USD":"ALLIANZ GLOBAL INCOME \"AMG\" (USD) INC","HSHD.SI":"HSBC HK SDR 5to1","BK4552":"Archegos爆仓风波概念","BK4118":"综合性资本市场","BK4566":"资本集团","HSBC":"汇丰"},"translate_title":"汇丰银行将裁员数百名顶级银行家以实现成本效率","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CIB":1,"DB":1,"FULT":1,"HSBC":1,"HSHD.SI":0.9},"content_text":"HSBC Holdings PLC HSBC plans to reduce its workforce by removing hundreds of top bankers to lower costs as part of its efforts to streamline the vast organization. This was first reported by Bloomberg.\nDetails of HSBC’s Downsizing\nNumerous managers in HSBC’s recently established Corporate and Institutional Banking (CIB) division have been told to apply again for their jobs, with interviews already under the way.This process effectively puts senior staff from the corporate banking division in competition with those in the global banking and markets unit. As part of the revamp, HSBC will stop the use of general manager titles and will offer senior staff managing director titles instead.This revamp is part of the initiative orchestrated by the new CEO of HSBC, Georges Elhedery, who aims to achieve $300 million (£238 million) in cost-savings.From January 2025, HSBC will split its operations geographically between Eastern and Western markets. Further, the company will restructure its four distinct business lines, one of which is the CIB division.\nRationale Behind HSBC’s Overhaul\nHSBC has been actively restructuring its operations to improve operating efficiency.  The company's restructuring efforts have already resulted in exits from non-core regions, including France and Canada, as well as a reduced presence in South Africa. These actions are consistent with its shift toward core growth regions in Asia, where it sees a higher potential for long-term returns. In 2020, the company announced its transformation plan to reshape underperforming businesses, simplify complex organizations and reduce costs. The company realized gross savings of $5.6 billion, with a cost to achieve a spend of $6.5 billion by 2022-end. The bank expects to achieve additional cost savings this year, driven by the actions undertaken in 2023. Further, in 2020, under the leadership of the then CEO Noel Paul Quinn, HSBC initiated a significant restructuring plan that included cutting 35,000 jobs to adapt to the challenging economic conditions brought on by the COVID-19 pandemic.\nOur View on HSBC’s Plans to Trim Middle Management\nElhedery's plans to further reduce middle management layers might indicate a continuation of the previous strategy, which aligns the bank's operational structure with its global focus.This initiative of reducing middle management is indicative of a broader trend in the banking sector amid economic pressure. By cutting back on middle management, HSBC will likely be able to mitigate costs, improve decision-making and delegate higher authority to lower-level staff.In the past six months, shares of HSBC on the NYSE have gained 5.1% against the industry’s decline of 10.1%.\nImage Source: Zacks Investment Research\nCurrently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.\nOther Banks Taking Similar Steps\nEarlier this month, Deutsche Bank DB laid off 111 senior managers, in particular, directors and managing directors from its retail and wealth management unit. These changes align with the bank’s strategy of trimming higher-paid roles to reduce expenses.According to a Financial Times report, the division has also slashed its reliance on external consultants to cut costs by 75%, exceeding the initial target of 70%, which was set in early 2024. This restructuring effort comes as DB intensifies its cost-cutting initiatives to reduce its cost-to-income ratio.Similarly, earlier this year, following the acquisition of the failed Republic First Bank, Fulton Financial Corporation FULT decided to lay off 111 jobs in its Mount Laurel, NJ-based location as part of its effort to eliminate redundant roles. Per a notice filed with the state’s Department of Labor & Workforce Development, the cuts will take effect between Nov. 11 and Dec. 27.FULT has decided to redesign some of the dropped roles into new ones and retain some staff whose roles have been cut.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nDeutsche Bank Aktiengesellschaft (DB) : Free Stock Analysis Report\nFulton Financial Corporation (FULT) : Free Stock Analysis Report\nHSBC Holdings plc (HSBC) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484921821"}