Georges Elhedery had already set out the direction of the reorganization when he took over as CEO of the British-Asian bank last October. Duplications are to be eliminated and the cumbersome bureaucracy within the organization reduced.

A part of the changes, HSBC is now divided into four business divisions: UK, Hong Kong, Corporate and Institutional Banking and Wealth Banking.

1.5 Billion Dollars in Savings

At Wednesday's earnings presentation, Elhedery will announce annual cost reductions of 1.5 billion dollars after one-time expenses, according to the «Financial Times» citing sources.

According to «Bloomberg», another round of redundancies is likely to be announced next week. This will affect investment banking in particular and will begin in Asia at this stage, according to anonymous sources. It is not clear how many employees will be affected by the measures.

New Round of Redundancies

The redundancies are to be staggered over several weeks and months. The decisions will be made based on performance, as well as to reduce duplication and simplify processes, the source said.

«As announced in October 2024, HSBC is focused on building its leadership position and market share in areas where it has a clear competitive advantage and where it sees the greatest opportunities for growth,» an HSBC spokesperson commented on the announcement.

No Direct Consequences for Swiss Business

HSBC shares have gained around 30 percent in value since the plans were announced last October.

The reorganization will have no direct impact on the Swiss subsidiary, which is primarily active in wealth management with high-net-worth clients.

The Swiss CEO, Gabriel Castello, also took over the position of CEO Global Private Banking and Wealth in the Group on an ad interim basis at the beginning of the year..