HSBC Axes 40 Hong Kong Dealmakers Amid Restructuring

HSBC has laid off around 40 investment bankers in Hong Kong, aligning with its global restructuring strategy to reduce costs and sharpen its focus on Asia. This development comes as part of a broader reorganization under CEO Georges Elhedery, who has been at the helm since September. The layoffs, which occurred ahead of the bank's full-year earnings release, are part of a plan that includes the convergence of commercial and investment banking units and a focus on key regions such as the UK, Hong Kong, and wealth management. Despite being rooted in London's financial landscape, HSBC is redirecting efforts towards its most profitable sectors and regions. The bank's decision has resulted in mixed market reception, with its stock underperforming against the benchmark Hang Seng Index. This strategic move underscores HSBC's commitment to enhancing returns through significant structural changes, expected to influence its long-term operational outlook.