Ahead of the bank's strategy update on February 18, people familiar with the matter said HSBC is targeting senior international managers in a bid to simplify its management setup as the bank struggles to boost profitability.
HSBC's interim Chief Executive Officer Noel Quinn is expected to unveil a new strategy that includes a round of cuts to its senior international managers and reduce its presence in smaller markets, «Reuters» reported on Wednesday.
The round of job cuts is expected to affect «a large number of global managerial roles across all business units,» particularly in London, though Asia would not be spared, the publication reported, noting that the region contributes to 90 percent of the bank's profits.
It also said that as part of the restructuring, the bank will review its presence in South America, which currently contributes to only 3 percent of its pre-tax profits.
Bank Overhauls European Management
Ahead of the bank's wider restructure, the bank announced on Wednesday that it had promoted Stephen Moss to regional chief executive for Europe, the Middle East, Latin America and Canada. The bank's former head of strategy and planning, who has been with HSBC since 1992, will bring the hitherto separately managed regions under his responsibility.
At the same time, the bank appointed former HSBC Mexico CEO Nuno Matos as chief executive of Europe. Matos joined HSBC in 2015 as regional head of RBWM in Latin America and global head of retail business banking and prior to that held a number of roles at Santander Group. He succeeds James Emmett, who will retire in September after 25 years at HSBC.
Both appointments are effective March 1.
