In response to impending regulatory shifts, Citigroup and HSBC Holdings are pivoting away from hybrid work arrangements. Potentially signalling a broader trend, the banks have mandated office presence for their US employees.
Citigroup’s move affects 600 employees who were previously allowed to work remotely and are now required to commute daily. Similarly, the policy change will impact around 350 HSBC workers—roughly half of the company’s city-based workforce.
Notably, not all employees may have a strict five-day workplace schedule. Due to forthcoming FINRA regulations, certain roles, such as dealmakers and bank traders, will be exempt from this mandate.
While first prompted by the epidemic, the relaxation of remote work laws is now being reversed, forcing firms to adjust. Major Wall Street firms, like Bank of America, JPMorgan Chase, and Goldman Sachs Group, are also implementing similar practices, albeit with additional benefits for employees.
Similarly, Truist Financial Corp. is enforcing weekday office presence for investment-banking employees beginning June 1.
Citigroup said in early March that it would lay off 286 employees in New York as part of an eight-percent reduction in global personnel strength. It has previously claimed that it hoped to complete the restructuring by 2026.
HSBC increased salary transparency and is introducing a new bonus structure for its junior employees. The idea calls for giving a precise sum known as ‘on target variable pay’ to personnel in support functions.
The transition to full-time office attendance reflects a broader commitment to regulatory compliance and operational efficiency, as organisations navigate legal requirements and workplace monitoring guidelines.
