HSBC’s 2024 financial report reveals a 3% decline in its global workforce as the bank focuses on cost-cutting measures and major restructuring initiatives under the leadership of new CEO Georges Elhedery. The reduction in headcount follows the bank’s strategic shift toward a more streamlined operation with a stronger emphasis on its Asia business, where it generates the majority of its profits.
Despite the headcount reduction, HSBC’s bonus pool remained relatively stable at $3.80 billion, a slight increase from the $3.77 billion allocated in 2023. This is in line with the bank’s effort to maintain incentive structures while focusing on improved profitability through increased revenue from its wealth and markets businesses.
Elhedery’s compensation for 2024 totaled £5.4 million ($6.8 million), a significant portion of which was linked to annual incentives. This reflects the broader trend within the banking sector, where top executives’ bonuses are rising as the UK removed caps on such payouts. Elhedery could potentially earn up to £15.2 million ($19.2 million) in 2025, with more than half of that amount being performance-based.
HSBC’s restructuring has included significant changes in its business units, particularly in commercial and investment banking. The report highlighted a 5.5% reduction in staff within the wealth and personal banking division, and it also noted the bank’s decision to cut 40 investment banking positions in Hong Kong earlier in the year.
The bank’s total global workforce reached 220,928 employees in 2024, down from 227,552 in 2023, and 232,642 in 2022. Additionally, HSBC’s salary and benefits bill rose slightly to $20.15 billion in 2024, up from $19.62 billion in the previous year.
These changes are part of Elhedery’s broader strategy to sharpen HSBC’s focus on the Asia region and boost the bank’s returns, while navigating a challenging global financial environment.
