HSBC It reportedly wants hundreds of managers to reapply for jobs in new divisions of the bank.
Interviews have begun for positions in HSBC's Corporate and Institutional Banking (CIB) division, Bloomberg News reported Monday (November 18), citing a person familiar with the matter.
These interviews — some of the new CEOs. Mr. Georges Elhedery The efficiency drive effectively pitted senior staff in HSBC's commercial banking division against those in its global banking and markets division in competition for CIB jobs.
Hundreds of executive directors will ultimately be fired, people familiar with the matter told Bloomberg. HSBC will also phase out the use of the general manager title for some of its most senior staff. These employees will now be known as “managing directors,” which Bloomberg describes as a “common class” at many financial services companies.
These changes come weeks after the UK-based major bank announced what it called a “simplified organizational structure”, but still hinted that major changes would begin early next year. There is.
HSBC plans to reorganize into four different business units, including the aforementioned CIB division, and will replace its 18-member Group Executive Committee with a new 12-member Group Operating Committee.
As Bloomberg notes, the bank has shed more than 100,000 employees over the past 16 years as successive CEOs sought to streamline global operations.
Mr. Elhederi, who has been with HSBC for nearly 20 years, was appointed chief executive in July after a brief tenure as chief financial officer.
Since then, rumors have circulated that the bank plans to combine its commercial and investment banking divisions and cut its executive ranks.
In other banking news, PYMNTS spoke with the following people last week: amount chief revenue officer Len Eschweiler About the increasing pressure facing financial institutions (FIs): “deposit drift.”
“This is a gradual migration of funds from traditional accounts and banks need to focus on that, otherwise banks will die by cutting 1,000 jobs,” he said. “Customers, both consumers and businesses, [small- to medium-sized business (SMB)] The side is constantly receiving competitive offers from fintech companies and rival banks. ”
Eschweiler said banks and credit unions are interested in raising sticky, long-term deposits as they struggle with volatility in their commercial real estate portfolios, said Karen Webster, CEO of PYMNTS. I told Mr. Therefore, one financial institution's deposit drift may benefit a rival bank.
“They're looking for ways to retain customers and grow their customer base,” he says. “That’s where deposits come into the picture in a meaningful way.”
