- HSBC has reportedly asked some managers to reapply for their jobs as part of a cost-cutting restructure.
- Bloomberg reported Monday that hundreds of senior staff will likely lose their jobs.
HSBC has asked some managers to reapply for their jobs in its newly created corporate and institutional banking division as part of a cost-cutting drive, Bloomberg reported.
Citing people familiar with the matter, Bloomberg said that the interview process has already started, involving senior staff from the bank's commercial banking business and others from the global banking and markets unit.
The people told Bloomberg that internal recruitment for the merged division would likely result in hundreds of managing directors and other senior bankers losing their jobs over the coming weeks.
They added that general manager titles will also be phased out and replaced by managing director titles at HSBC, which has around 221,000 employees worldwide.
The plans have not been finalized and could be subject to change, the people said.
HSBC declined to comment when approached by Business Insider.
The combined division is part of a restructuring plan introduced by new CEO Georges Elhedery in October.
The biggest change announced was the simplification of HSBC's structure, creating Eastern and Western arms to manage its global operations.
Under the new structure, HSBC's operations in Asia-Pacific and the Middle East will form the "Eastern markets," while its UK, European, and Americas business will be known as the "Western markets."
Other changes include the creation of a new international wealth and premier banking unit.
The London-listed bank said in October that its third-quarter pre-tax profits rose roughly 10% year over year to $8.5 billion.
Elhedery, who was formerly HSBC's CFO and became CEO in September, told analysts in a call after the third-quarter results that cutting senior roles would lower costs.
"Now, as a result of a simpler, leaner, more efficient bank, there will be cost saves," he said.
He previously told staff in October that they should expect job cuts following the announcement of the revamp, Reuters reported at the time, citing an internal memo.
"Inevitably some of our colleagues will face redundancies as we streamline duplicative senior roles," Elhedery said.