HSBC lays off investment bankers, cancels bonuses amid restructuring

HSBC has laid off a group of investment bankers at the vice-president level and above without awarding them their expected bonuses, coinciding with a restructuring initiative by new CEO Georges Elhedery. This shift marks a significant departure from the bank's traditional practice of providing bonuses during layoffs, raising eyebrows in the industry. The layoffs are part of a broader cost-cutting strategy aimed at achieving significant savings by 2025, which includes the closure of mergers and acquisitions advisory operations outside Asia and the Middle East. Elhedery's plan, which includes a potential pay increase for himself, reflects HSBC's focus on enhancing shareholder value amidst economic challenges facing the financial sector. Observers note that while many banks have cut jobs in response to market pressures, HSBC's actions on bonus day particularly highlight a shift in its employee care approach. The future of further cost-cutting measures remains uncertain as the bank adapts to a changing financial landscape.