HSBC expects cost-cutting drive to hit less than 8% of global headcount

HSBC chief executive officer Georges Elhedery has said that the impact on the bank’s global headcount arising from its drive to cut costs is likely to be under 8 per cent, as it focuses on generating 8 per cent in savings from salaries.

He said at a media conference call after the bank unveiled its earnings on Wednesday (Feb 19): “We’re not tracking headcount; what we’re tracking is the realisation of cost savings – we’re tracking this like hawks.”

The bank is homing in on removing roles that are duplicated, he noted, and added that many of these are at the more senior levels, involving staff with higher compensations. The percentage of jobs cut is therefore likely to come in lower than the savings.

The Asia-focused bank said that it aims to generate about US$300 million in cost reductions in 2025, and commits to an annualised reduction of US$1.5 billion in its cost base by the end of 2026.

These announcements follow Reuters’ report that HSBC had laid off around 40 investment bankers in Hong Kong. The bank’s annual report, also issued on Wednesday, put its global staff strength as at last Dec 31 at 211,304 staff. That was down 4.3 per cent year on year.

While not commenting on the report on the job cuts in Hong Kong, Elhedery said that there would be layoffs in the city. Some of those would be roles supporting the mergers and acquisitions (M&A) and equity capital markets (ECM) businesses in Europe and the Americas – arenas HSBC has already said it would exit, he said.