HSBC is set to axe a number of investment bankers this Friday whilst rewarding some with bonuses, sources told City AM.
Amidst the FTSE 100 giant’s restructure, employees are expecting updates this week on their role’s future with many now looking to Friday – the same day pencilled in for bonuses.
According to sources close to the matter, there is an expectation “that some will get a bonus and others will go.”
In its annual results on Wednesday morning, the UK’s largest bank committed to $1.5bn (£1.2bn) worth of cost cuts by the end of 2026.
This follows new boss Georges Elhedery’s overhaul of the group’s global structure, seeking to reduce costs and drastically improve profitability across the business.
Elhedery set out plans last year to merge the global commercial and investment banking arms, which is expected to include job cuts among senior bankers.
Coverage sector feeling ‘positive’
Following the government’s scrapping of the EU bonus cap, the new chief executive, who took over last year, is in line for an increased pay package worth over £15m, according to Sky News’ Mark Kleinman.
A source told City AM bankers in the coverage sector have “positive” expectations ahead of any announcements after some received informal confirmation they will be receiving a bonus.
The source added that the first round of layoffs could come as soon as Thursday. However, many are still expecting communication on Friday.
The lender’s investment banking arm has been one of Elhedery’s biggest targets for cost reductions, with 40 deal makers in Hong Kong axed this week, as reported by Reuters.
In its annual results, the Big Four bank recorded a pre-tax profit of $32.3bn (£25.6bn) for 2024, up from $30.3bn (£24bn) in 2023.
Operating expenses were also up $1bn (£800m), with the bank citing higher technology investment and the impact of inflation as the main cause.
HSBC declined to comment on any potential job cuts and bonus distribution.