HSBC Cuts Geopolitical Risk Management Roles

HSBC has reportedly cut roles in its geopolitical risk management department, sparking concern among employees. The move is seen as a reflection of the bank's shifting priorities and the evolving nature of global risks. The exact number of affected employees is not disclosed.

HSBC Holdings, the UK-based multinational banking giant, has reportedly cut roles in its geopolitical risk management department, sparking concern among employees. This move is seen as a reflection of the bank's shifting priorities and the evolving nature of global risks. The exact number of affected employees is not disclosed.

The restructuring of HSBC's geopolitical risk management department comes amidst broader strategic changes at the bank. HSBC is undergoing a significant transformation to balance near-term challenges with long-term ambitions, particularly in its personal banking division. The bank is focusing on cutting costs while reinvesting in growth, aiming to boost its return on equity (ROE) [1].

HSBC's CEO, Georges Elhedery, is spearheading the restructuring program, which involves aggressive measures such as staff reductions and the sale of non-core assets. The bank anticipates £1.8 billion in restructuring charges over the next two years, including potential delays from regulatory hurdles for asset sales [1].

The bank's strategy also involves a regional realignment, with a focus on high-margin markets like Asia and the Middle East. In contrast, HSBC is retreating from non-core businesses in Europe, which face competitive pressures and thin margins [1]. This shift aligns with the bank's broader strategy to merge commercial and wealth divisions under a new "Premier Banking & Wealth" unit, aiming to cross-sell products and enhance fee-based revenue.

The geopolitical risk management cuts are part of a broader trend of cost-cutting and restructuring within the financial sector. According to Intellizence, since January 2025, over 2,000 companies have announced mass layoffs, including major players like Intel, Microsoft, and Procter & Gamble [2].

While the exact impact of these cuts on HSBC's geopolitical risk management capabilities is unknown, the move underscores the bank's focus on operational efficiency and cost discipline. For investors, the question remains whether HSBC can successfully navigate these challenges and turn its strategic advantages in Asia into consistent profitability.

References:
[1] https://www.ainvest.com/news/hsbc-holdings-navigating-restructuring-regional-shifts-personal-banking-2507/
[2] https://intellizence.com/insights/layoff-downsizing/major-companies-that-announced-mass-layoffs/