HSBC Holdings PLC (LSE:HSBA) is to rein back its investment banking in the UK, Europe and North America under the next stage of new chief executive Georges Elhedery’s restructuring plan.
At the end of last year, HSBC announced a split into four operations divided geographically by east and west as part of US$3 billion in cost cuts.
“We will retain more focused M&A and equity capital markets capabilities in Asia and the Middle East, and we will look to wind down those activities in Europe, the UK and the Americas,” an HSBC spokesperson told Reuters.
“Our intention is to move to a more competitive, scalable, financing-led model,” the firm said in a memo to staff.
Reports have suggested that Elhedery’s plan to streamline HSBC will mean 40% of the bank’s 175 top managers depart alongside more junior staff.
Hundreds of senior executives have already been asked to reapply and interview for their roles following the merger of the corporate and investment banking businesses, said the report.
Shares in HSBC were little changed at 822p.