HSBC Slows Hiring, Cuts Costs As Europe's Largest Bank Prepares For New CEO

HSBC Holdings Plc HSBC looks to cut costs wherever possible.

Europe's largest bank is pulling back on hiring and advising investment bankers to limit travel and entertainment expenses.

HSBC is not replacing all recently departed staff. Instead, certain departments have been instructed to pause hiring altogether, though client-facing positions remain unaffected, reported Bloomberg.

Investment bankers are required to schedule at least three client meetings per day during business trips to optimize travel.

Employees were reminded of these expectations during a recent company town hall. HSBC emphasized in a statement that it’s working to manage costs in preparation for potential interest rate cuts by central banks in the coming months.

So far, HSBC and other banks have enjoyed high rates bolstering profits.

Also Read: Thousands Of HSBC Britain Customers Left Stranded By Online Banking Outage

Outgoing CEO Noel Quinn aims to reduce costs at , who announced his resignation earlier this year, is striving to stabilize the bank's finances before his departure. The board aims to appoint his successor within the next few weeks.

HSBC's investment banking division has seen more drastic cost-saving measures, including the dismissal of around a dozen bankers in Asia in April.

The division is grappling with an industry-wide downturn in dealmaking and capital markets activity, particularly in key markets like Hong Kong and China, which continue to face post-pandemic economic challenges.

Price Action: HSBC Holdings stock gained more than 9% in the last 12 months. Investors can gain exposure to the stock via the Dimensional International Value ETF DFIV and Trust For Professional Managers ActivePassive International Equity ETF APIE.

HSBC shares are trading higher by 0.02% at $43.82 at last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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