HSBC Holdings PLC (LSE:HSBA) is reportedly close to axing some of its most highly paid senior bankers to try and cut up to $300 million of costs.
After taking over as chief executive last month, Georges Elhedery is working on a merger of the lender's commercial banking division and its global banking and markets unit, the Financial Times reported today.
Plans for the internal merger, which was also reported by Bloomberg a month ago, are now at "an advanced stage", the report indicated, and are likely to be confirmed to staff and in public this month.
By combining commercial banking with the markets division, the top layer of management will be able to be removed, one FT source said, removing some highly paid staff.
In his first 'town hall' company meeting, Elhedery told colleagues that cost control is his main priority, with HSBC's large cost base regularly cited by analysts as much higher than those of its peers.
Before his official start date, HSBC had already announced a round of senior departures, led by the bank's chief operating officer, head of human resources and the head of its wealth unit.