HSBC Holdings is set to initiate a fresh wave of job cuts in its investment banking division next week, as part of CEO Georges Elhedery’s broader efforts to reshape Europe’s largest lender. According to sources familiar with the matter, the layoffs will begin in Asia and are expected to extend globally, though the exact number of affected employees remains unclear.

The latest round of job reductions follows ongoing cuts in HSBC’s markets division and will be executed in stages, with the first phase beginning as early as February 17. The dismissals, which will be spread over several weeks and months, are being carried out based on performance metrics and the bank’s strategic push to eliminate role duplications and streamline operations, one source noted.

“As announced in October 2024, HSBC is focused on increasing leadership and market share in the areas where it has a clear competitive advantage and where it has the greatest opportunities to grow,” an HSBC spokesperson said in response to an inquiry from Bloomberg.

Since assuming the role in September, Elhedery has aggressively pursued cost-cutting measures, including a major restructuring that merged the commercial banking division with the global banking and markets unit. HSBC has also scaled back its underwriting and advisory businesses in Europe and the Americas as part of its shift in focus.

The restructuring has already led to significant reductions in senior staff. Reports indicate that over 40% of HSBC’s top 175 managers have been impacted, with the bank aiming to complete these changes by June. Elhedery has also trimmed the size of his executive committee by roughly a third.

The upcoming job cuts are part of HSBC’s broader strategy to maintain competitiveness in an increasingly challenging banking landscape. While the firm is tightening costs, its financial performance remains robust. HSBC is forecast to report a pre-tax profit of US$31.7 billion for 2024, reflecting a 4.6% increase from the previous year. Additionally, its stock has reached a seven-year high in Hong Kong, suggesting investor confidence in its restructuring efforts.

Despite the planned layoffs, HSBC has assured stakeholders that it will provide greater clarity on the extent of its restructuring when it announces its full-year earnings on February 19. The outcome of these job cuts and the bank’s long-term strategy will likely be closely watched by analysts, employees, and investors alike, as HSBC navigates its ongoing transformation under Elhedery’s leadership.