(17 February 2025 – Asia) HSBC Holdings Plc is preparing for a new wave of job reductions in its investment banking division, as part of an ongoing effort to streamline operations and control costs under CEO Georges Elhedery.
In reporting from Bloomberg, the latest round of layoffs will begin in Asia this week, with further reductions expected globally in the coming weeks and months.
Since stepping in as CEO in September 2024, Elhedery has led a series of cost-cutting initiatives, including:
- Merging commercial banking with the global banking and markets unit,
- Exiting parts of underwriting and advisory in Europe and the Americas, and
- Reducing the group executive committee by a third.
Bloomberg previously reported that more than 40 percent of HSBC’s top 175 managers would be affected by these leadership changes, with final decisions expected by June.
HSBC’s pullback from equity underwriting and advisory services outside its core markets in Asia and the Middle East has left dealmakers in the region uncertain about the future.
Many employees have already moved to rival firms, raising concerns about HSBC’s ability to retain cross-border M&A mandates and lead roles on US listings of Chinese companies.
In response to internal concerns, veteran dealmaker Matthew Ginsburg reassured staff that while changes will impact Asia, the region remains central to HSBC’s strategy. Management has also positioned the bank as a boutique-style dealmaker, leveraging its strong corporate and institutional banking relationships in Western markets to win mandates in Asia and the Middle East.