- HSBC Holdings
- 10 July 2024 13:16:46
Source: Sharecast
Bloomberg, citing an internal memo, reported that the bank's global banking sector teams would be consolidated into five larger groups to enhance efficiency and focus on innovation and sustainability.
According to the memo, Adam Bagshaw and Matthew Ginsburg said the streamlined structure would enable more agile and flexible operations, positioning HSBC for growth.
The reorganisation followed Citigroup's recent strategy of merging sector groups, such as combining its technology and communications teams and creating a natural resources group in 2021.
HSBC was reportedly planning to brief employees on the new structure in the coming days, and would hold a town hall meeting for all investment banking staff in September.
The restructuring was part of broader efforts to adapt to a potential decline in profits due to falling interest rates.
Recently, HSBC had slowed its hiring and not replaced some departed staff.
Investment bankers had also been urged to limit travel and entertainment expenses and maximise the efficiency of work travel by setting up multiple client meetings per day.
The changes were being made as HSBC prepares for a leadership transition, with CEO Noel Quinn set to step down and the board expected to announce a successor soon.
HSBC was expected to report a 4.9% decline in revenue to $16.1bn for the second quarter, along with a drop in profits.
Reporting by Josh White for Sharecast.com.
