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HSBC HOLDINGS Elhedery: No Target for Layoff No.; Total Job Cuts May be Lower than 8%
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HSBC HOLDINGS (00005.HK) CEO Georges Elhedery said in a results conference call that there is no target number of layoffs set by the bank, and that the reduction in headcount will mainly come from overlapping higher- hierarchy staff within the group, which is believed to trim existing staff expenses by about 8%. The total reduction in headcount is expected to be less than 8% as most of those affected are higher-paid staff. To achieve this goal, he said the group plans to incur US$1.8 billion in severance and other upfront costs in 2025 and 2026, with most of the upfront costs to be incurred this year as the majority of decisions are expected to be made this year. He said Corporate and Institutional Banking (CIB) will reduce investment banking in Europe and the US, particularly in M&A-related businesses. The bank will continue to review non-core and underperforming businesses in the future, not ruling out a further exit from some of the regional businesses, with cost savings being used to invest in parts of the business that have growth potential, including wealth management in Asia, Hong Kong and mainland China, as well as SME business in the UK. AAStocks Financial News |
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