(Bloomberg) -- HSBC Holdings Plc warned it will likely cut senior manager jobs as the lender embarks on one of its biggest restructurings.
“As we integrate the businesses, there will inevitably be a reduction in duplicated roles, particularly at senior levels,” Chief Executive Officer Georges Elhedery said in a memo to his staff.
Europe’s biggest lender on Tuesday unveiled a broad restructuring across different business lines and geographies as the newly appointed Elhedery embarks on an ambitious effort to cut costs at the bank.
The overhaul will mean that some senior roles will be made redundant, while the bank will work to minimize the impact on front-line customer facing roles, according to a person familiar with the matter.
HSBC couldn’t immediately be reached for a comment.
The announcement on Tuesday stumped some employees, who wondered how they would fit under the new structure, people familiar with the matter said. The lack of specifics on the financial impact was also questioned by investors. HSBC said it wouldn’t be providing further details until it announces full-year results in February.
The lender will combine its global commercial and institutional banking operations under Michael Roberts. In its new geographic set up, HSBC will have an Eastern regional unit including Asia Pacific and the Middle East, and a Western market that includes its non-ring-fenced bank in the UK, Europe and the Americas. It also made Hong Kong and UK standalone units.
Elhedery is under pressure to lower costs in order to protect the firm’s margins as central banks around the world begin to cut interest rates. The overhaul will cut the number of executives who sit on the newly named key operating committee to 12 from 18.
Some key executives already announced their exits as part of the restructuring. They include Stephen Moss, who runs Middle East and North Africa, along with Colin Bell, who led operations across Europe.
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