Mid-senior level employees at HSBC were eagerly anticipating their bonuses, but instead, they received news of their layoffs. Employees at the vice president level and above were let go as part of the bank’s cost-cutting measures, and notably, they did not receive any bonuses.
Although there has been no official announcement regarding this situation, a report from the Financial Times indicates that such sudden terminations are unusual for HSBC, which is traditionally known for treating its employees well. It appears that cost management has become a priority for the bank amid ongoing uncertainties, high interest rates, and economic challenges in the finance and banking sectors.
HSBC has been focusing on enhancing profitability in its investment banking division, particularly since Georges Elhedery took over as CEO just over a year ago. In January of this year, reports indicated that while most bankers in the European banking industry were either enjoying or expecting higher bonuses, HSBC had informed its employees to temper their expectations. The financial institution was preparing to cut costs and was in the midst of a restructuring process.
Though the specifics of the incentive payouts were not finalized in January 2025, it was suggested at the time that the bonuses would fall below expectations. Additionally, the payouts were indicated to vary based on performance throughout the year. The bank expressed its intention to be fair in rewarding its employees across its global offices.
