HSBC Holdings is intensifying efforts to cut costs under CEO Georges Elhedery, aiming to save at least US$3 billion by June 2025, according to a Bloomberg report.

The initiative represents approximately 10% of HSBC’s projected US$32.6 billion annual expense bill for 2023.

Bloomberg Intelligence analysts suggest that HSBC’s US$19 billion annual wage bill is likely to be a key area for further cost reductions, forming a significant part of the bank’s broader restructuring strategy.

Details of the financial impact, including a one-time charge tied to the restructuring, are expected during the bank’s full-year earnings announcement in February.

Elhedery, who took the helm in September 2022, has already enacted significant changes to HSBC’s leadership and business structure.

The size of the group executive committee has been reduced by about one-third, with plans to cut over 40% of the bank’s top 175 management positions.

High-profile departures include Annabel Spring, former global head of private banking; Celine Herweijer, group sustainability officer; Stephen Moss, head of the Middle East, North Africa, and Turkiye; and Colin Bell, head of European operations.

Earlier this year, Nuno Matos, former head of wealth and personal banking, left to become CEO of ANZ Group Holdings.

As part of the restructuring, HSBC is consolidating commercial banking into its global banking and markets division, carving out standalone entities for its Hong Kong and UK operations, and launching a new premier banking and wealth management unit.

Elhedery has said the changes aim to provide HSBC with “a clear competitive advantage and the greatest opportunity to grow.”

Featured image: Edited from HSBC 

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