HSBC to cut jobs as it targets £231m savings in East and West global overhaul

The bank said it was simplifying by splitting up into four key units, and geographically into East and West. This includes merging its commercial and institutional banking operations, and creating a new international wealth and premier banking division

HSBC has announced a major restructuring under the guidance of its new chief, Georges Elhedery, aiming to slash costs and concentrate on the bank's most profitable sectors.

The banking giant is streamlining operations by dividing into four primary divisions and reorganising geographically into East and West zones. This includes the amalgamation of its commercial and institutional banking branches, as well as the formation of a fresh international wealth and premier banking segment.

The remaining two segments will consist of a novel UK enterprise and a Hong Kong entity. Additionally, HSBC plans to reorganise along regional lines, establishing "Eastern markets" that include Asia and the Middle East, and "Western markets" that cover the UK, Europe, and the Americas.

These changes are expected to be implemented by 2025. Reports have indicated that this overhaul could result in job cuts among the bank's highly paid senior bankers, particularly within the extensive commercial and investment banking areas.

The introduction of Eastern and Western markets will also lead to previously independent regions, such as Europe and the Americas, being unified under a single CEO. Michael Roberts is set to head both the corporate and institutional banking and the Western markets divisions.

Mr Elhedery, who assumed leadership last month, commented: "The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged."

"By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow."

HSBC has also unveiled a major shake-up of its top brass which includes Pam Kaur becoming its CFO – reportedly the first woman to ever hold this post, succeeding Mr Elhedery.

Ms Kaur is a seasoned professional with over ten years at HSBC. This restructuring streamlines the executive committee from 18 to just 12 members, with Mr Elhedery eyeing up potential cost savings that could hit $300m dollars (£231 million).