HSBC Plans Job Cuts to Save $300 Million

HSBC's new CEO, Georges Elhedery, is set to announce a restructuring plan aimed at saving up to $300 million (£229 million) by merging its global and commercial banking divisions, leading to job cuts among high-paid senior bankers. The bank, which employs over 221,000 people, has faced recent challenges, including an 80% drop in profits in late 2023, prompting the need for cost reductions. The merger is expected to eliminate duplicated roles and streamline operations, with an official announcement anticipated later this month. Despite the plan, the targeted savings represent only a small fraction of HSBC's overall expenses, which reached $32 billion in 2023. HSBC has also been shifting its focus towards markets in Asia, reducing its presence in Western regions. The strategy reflects a broader effort to enhance efficiency in response to changing market conditions and declining net interest income expectations.