(Bloomberg) — HSBC Holdings Plc is placing some of its investment bankers on short-term retention agreements as it winds down various businesses in a broad overhaul led by new Chief Executive Officer Georges Elhedery, according to people familiar with the matter.
In some cases, the bankers are on three- to six-month work arrangements to finish client mandates across Europe, Asia and the Americas, after the lender said it would shutter selective investment-banking units, the people said, asking not to be identified as the deliberations are private.
The plan also includes cutting many of vice chair roles in various markets, the people added. It’s not clear how many bankers are affected by the latest moves.
“We remain committed to supporting clients globally,” a London-based spokesperson said in an email. “HSBC is moving to a new, simpler structure as we continue to focus on products and geographies where we can have a clear competitive advantage.”
Six months into his new role, Elhedery has undertaken one of the most significant upheavals in more than a decade in a bid to focus on areas where the UK bank says it can best serve its corporate and institutional clients. He previously combined the commercial banking division with the global banking and markets unit.
HSBC will incur $1.8 billion in charges over the next two years as it embarks on the global restructuring program that has seen the lender reduce management ranks. The company began informing select managers in its corporate advisory and equity underwriting teams in New York, London and continental Europe that it was shuttering their businesses in January, a move affecting hundreds of jobs. In February, it kicked off cuts in its investment bank starting in Asia and affecting employees globally.
With the wind down looming, some senior bankers are being forced to pay for team-building activities out of their own pockets due to the expenses curbs, the people said.
More stories like this are available on bloomberg.com
