HSBC to slash costs by $1.5 billion under new leadership

In February 2025, HSBC, the largest bank in the UK, announced a significant restructuring plan led by its new CEO, Georges Elhedery. The bank aims to create a more streamlined and efficient operation by cutting $1.5 billion from its annual costs by the end of next year. This ambitious target involves finding approximately $300 million in savings for the current year. To implement these changes, HSBC is also prepared to absorb severance costs and additional charges totaling $1.8 billion over the next two years. While Elhedery did not disclose specific numbers for job losses, he did mention that the overall reduction in the workforce, currently standing at about 211,000 employees, would be less than 8% in percentage terms. Despite this assurance, the restructuring is expected to result in painful job cuts, including positions already eliminated prior to this announcement. The rationale behind this overhaul comes amid an environment of declining interest rates, which has challenged the bank's profitability. Nevertheless, HSBC managed to report a profit of $32.3 billion for the year 2024, exceeding market expectations. This recent success may have prompted the strategic moves under Elhedery's leadership as he seeks to navigate the bank towards future stability and growth.