Incoming HSBC boss weighs middle management shake-up
HSBC’s incoming chief executive is reportedly considering measures like removing layers of middle management in a sign that he wants to streamline Europe’s biggest bank.
Georges Elhedery is mulling plans that could include cutting the number of country heads operating across HSBC’s global network, Bloomberg News reported.
Elhedery, the London-based bank’s finance chief, is due to take over as CEO from Noel Quinn on 2 September.
It was also said that Elhedery is likely to make changes to the executives and roles that will report to him after he takes up his position as CEO.
Elhedery’s discussions are at very early stages, and his plans for streamlining HSBC’s operations remain subject to change, it is understood.
HSBC declined to comment when approached by City PM
The news comes as central banks across the world begin cutting interest rates and are expected to further ease monetary policy in the coming months, presenting lenders with the prospect of tighter margins and lower profits.
Banks all over the world have seen their profits lifted by the increase in global interest rates over the past few years, with HSBC posting a record annual profit in 2023 and announcing $34.4bn (£26bn) in investor payouts over the last 18 months.
Quinn’s tenure has been marked by efforts to improve shareholder returns through reducing costs and streamlining the bank, including exiting non-core markets and cutting thousands of jobs.
Earlier this summer, HSBC was reported to have slowed down hiring and encouraged its bankers to rein in some expenses.
The reported consideration of streamlining HSBC’s middle management echoes similar moves made by rivals Standard Chartered and Citigroup.
The former said in March that it would scale back its number of local managers, while Citi chief Jane Fraser is removing five layers of management and tens of thousands of jobs as part of a major overhaul.