HSBC slashes senior roles to meet 1.1bn cost savings target early

"Under chief executive Georges Elhedery, who took the helm in 2024, the bank targeted $1.5 billion (1.1 billion) in annual cost reductions by 2026. However, HSBC revealed on Wednesday it now expects to achieve this by the end of June – six months ahead of schedule."

"Mr Elhedery said that a large amount of the savings, including the $1.2 billion identified last year, stemmed from the "deduplication" of jobs within the group, particularly among senior positions. He said this resulted in a net 15 per cent reduction of managing director positions, which has not had any impact on the group's revenues."

"HSBC revealed that it handed out bonuses worth $3.9 billion (2.9 billion) to its eligible staff during the year – a 10 per cent increase compared with the previous year."

HSBC announced $1.2 billion in cost reductions for 2025, primarily through eliminating senior management positions as part of a structural simplification program. Chief executive Georges Elhedery, appointed in 2024, is executing a strategy to achieve $1.5 billion in annual cost reductions by mid-2026, six months earlier than originally planned. The bank reduced managing director positions by 15 percent without impacting group revenues. Simultaneously, HSBC distributed $3.9 billion in bonuses to eligible staff, representing a 10 percent increase from the previous year. These measures reflect the bank's focus on organizational agility and efficiency while maintaining employee compensation incentives.

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