HSBC has reportedly made redundancies, letting go of over two dozen analysts within its investment banking sector as part of the chief executive Georges Elhedery’s extensive revamp plans.
The bank’s reductions have been predominantly in Europe, signalling a scaling back in the region, with HSBC recently cutting 10% of its workforce in France and cancelling its UK Corporate and Investor Conference, an important event for UK business figures, analysts, and investors, as reported by City AM.
These moves are part of HSBC’s strategic shift towards Asian markets to fuel growth, with Elhedery’s restructuring strategy dividing the business into “eastern markets” focused on Asia-Pacific and the Middle East, and “western” encompassing the Americas and Europe.
Following a robust performance in its Asian operations, HSBC reported a pre-tax profit of $34.1bn (£25.7bn) for 2024, yet the latest European cutbacks reflect the company’s changing priorities.
Elhedery noted in his shareholder letter: “In the West, the US remained an outperformer, while growth across Europe was disappointing.”
He added “In Asia and the Middle East, there was broadly steady growth.”
Despite the overall success, Steve Major, the Dubai-based global head of fixed income research at HSBC, was among those affected by the recent layoffs, as per Bloomberg reports.
Investment bankers have found themselves in the crosshairs as Elhedery aims for £1.2bn in cost savings by the end of 2026.
The FTSE 100 behemoth is also planning to unify its macro strategy across various asset classes, including foreign exchange and fixed income.
The bank once boasted one of the largest research divisions on Wall Street, with over 330 analysts and associates generating more than 12,000 reports annually.
City AM disclosed in February that the bank was set to make a number of UK investment bankers redundant on the same day earmarked for bonuses.
