HSBC CEO Plans Management Restructuring

Georges Elhedery, HSBC's incoming CEO, is contemplating significant changes to streamline the bank's management structure by reducing layers of middle management and potentially eliminating several country head positions as part of a broader efficiency strategy. These discussions are at an early stage, and the plans could evolve as Elhedery prepares to assume his role on September 2. This move aligns with similar efforts by competitors Citigroup and Standard Chartered, which are also restructuring to boost operational efficiency. HSBC has already been focusing on cost-cutting measures, including exiting non-core markets and reducing its workforce under outgoing CEO Noel Quinn. The bank's strategy follows a record profit in 2023 and aims to enhance agility in decision-making amidst a changing economic landscape. However, such cuts may raise concerns about job security and morale among employees.