HSBC expects cost-cutting drive to hit less than 8% of global headcount

HSBC chief executive officer Georges Elhedery has said that the impact on the bank’s global headcount arising from its drive to cut costs is likely to be under 8 per cent, as it focuses on generating 8 per cent in savings from salaries.

He said at a media conference call after the bank unveiled its earnings on Wednesday (Feb 19): “We’re not tracking headcount; what we’re tracking is the realisation of cost savings – we’re tracking this like hawks.”

The bank is homing in on removing roles that are duplicated, he noted, and added that many of these are at the more senior levels, involving staff with higher compensations. The percentage of jobs cut is therefore likely to come in lower than the savings.