An IMGW News Report
In a ruthless display of corporate austerity, HSBC has executed a wave of redundancies targeting senior investment bankers—many of whom were shown the door on the very day they expected to receive their annual bonuses. The move, which blindsided affected staff in London and Hong Kong, has not only prompted internal consternation but also raised broader concerns about the bank’s evolving culture under new leadership.
“bonuses are no longer sacred, and the old social contract is rapidly being rewritten”
Those made redundant reportedly received no compensation for their 2024 performance—leaving many to question whether loyalty and service still hold currency at one of the world’s most prominent financial institutions. “It’s very unlike HSBC,” said one former employee. “The bank had a reputation for looking after its people.” Expectations of pro-rata bonuses were dashed in what some insiders have called a reputational own goal.
The layoffs form part of a wider strategic pivot led by CEO Georges Elhedery, who assumed the role in September 2024. Under his stewardship, HSBC is aiming to save $1.5bn annually by 2026 through sweeping cuts to its investment banking business in Western markets. In particular, its mergers and acquisitions (M&A) and equity capital markets arms are being scaled back.
Instead, the bank is doubling down on growth in Asia and the Middle East—regions where it sees greater long-term potential. Yet, the manner of these layoffs may complicate morale and retention in other parts of the bank. For those still within the HSBC fold, the message was clear: bonuses are no longer sacred, and the old social contract is rapidly being rewritten.
