HSBC Holdings Plc has laid off more than two dozen analysts in recent days, deepening a strategic overhaul of its investment banking operations. Among those impacted is Steven Major, the Dubai-based Global Head of Fixed Income Research, according to people familiar with the matter who requested anonymity due to the confidential nature of the discussions.
Most of the job cuts have taken place in Europe, with the lender aiming to streamline research functions and increase cost efficiencies across its global footprint. The move is part of a broader restructuring push led by Chief Executive Officer Georges Elhedery.
Leadership Reshuffle Underway
As part of the changes, HSBC is merging macro strategy teams across various asset classes, including fixed income and foreign exchange. Murat Ulgen, currently the bank’s Global Head of Emerging Markets Research, has been named interim Head of Macro Strategy, according to the people.
Additionally, Eliot Camplisson and Raj Sinha will take on expanded responsibilities as Co-Heads of Global Equity Research, while Janet Henry will continue to lead the Global Economics team.
“Our global research, equities sales and trading businesses are core to corporate & institutional banking,” a spokesperson for HSBC said in an emailed statement. Major did not respond to a LinkedIn request for comment.
Focus Shifts to Private Credit and High-Growth Segments
HSBC’s overhaul extends beyond research. The London-based bank recently reorganised its capital markets and corporate advisory units into a new division focused on tapping into the booming private credit market. The changes are designed to redeploy resources from low-returning operations to more profitable business areas.
This strategic pivot includes shutting down much of its M&A and equity underwriting units in the US, UK, and continental Europe. Ed Sankey, Global Head of Equity Capital Markets, is among the high-ranking officials departing as part of the restructuring, according to Bloomberg News.
Senior Executives Exit as Costs Rise
The shake-up is also prompting leadership churn. Senior banker Greg Guyett, former head of HSBC’s global investment banking arm, is expected to exit within months. Several vice-chairman roles that reported directly to Guyett are also being trimmed, people familiar with the matter said.
Elhedery’s restructuring is forecasted to cost the bank $1.8 billion over the next two years. However, billions more will be invested into business units with higher growth potential.
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HSBC Stock Rises Despite Challenges Ahead
Despite internal changes, HSBC shares have risen over 10% this year in London trading. Still, with a significant portion of revenue coming from Asia, the bank remains highly exposed to external risks like the ongoing tariff war and rising geopolitical tensions between the US and China.
(With Inputs From Bloomberg)
