HSBC Sets Cost Saving Target Through 2026
As anticipated, HSBC has announced its cost reduction plan through the end of 2026. The cuts will mostly be related to the bank’s employees.
HSBC aims to cut $300 million of expenses in 2025 with a commitment to an annualized cost base reduction of $1.5 billion by the end of 2026, according to the bank’s 2024 strategic report.
«These savings are primarily people-related organizational design reductions, have negligible impact on revenues and are aligned to the strategic reorganization of the Group,» the British lender said.
Simplified Business
The bank has already rejigged its global business shifting from what it calls a «complex matrix governance structure» of three business lines and five geographical regions to four new units: corporate and institutional banking, international wealth and premier banking, Hong Kong and the UK.
«By refocusing on our core strengths, we are creating a simple, more agile, focused organization structured to better serve our customers and deliver for our shareholders,» said HSBC group CEO Georges Elhedery. «We have taken the first deliberate and decisive steps. We continue to move at pace and with a relentless focus on actively managing our costs. Not as a one off, but as an embedded mindset.»
