HSBC has announced a major restructuring in various business units and regions. With this, the new CEO Georges Elhedery has initiated an ambitious cost-cutting program after only a few weeks in office.

«The new structure will result in a simpler, more dynamic and agile organization as we focus on executing on our strategic priorities, which remain unchanged,» CEO Elhedery wrote in a message to employees, according to «Reuters».

Pam Kaur (Image below) has been appointed as the new chief financial officer. She has been with the bank since 2013 and previously headed the Risk and Compliance department.

(Image: HSBC)

«Business as usual» in Geneva

The Swiss subsidiary, headquartered in Geneva and primarily focused on private banking and UHNW (ultra high net worth) clients, is not impacted by the organizational restructuring, a spokeswoman told finews.ch. «The changes will make it easier for us to further expand our global private banking business in Switzerland and the region.»

The bank combines global investment banking and corporate banking under the leadership of Michael Roberts. In addition, the new International Wealth and Premier Banking division will be created, which will be headed by Barry O'Byrne. The previous head of the MENA region, Stephen Moss, and the head of Europe, Colin Bell, are leaving the company.

Regionally, HSBC is undertaking an east-west separation of the business. This means the combination of Asia-Pacific and the Middle East on the one hand, and the United Kingdom, Europe and North and South America on the other. Hong Kong and Great Britain will remain as independent entities.

As a result, the top body of the company's management — the «Key Operating Committee» — will be reduced from 18 to 12 members. The company did not provide any concrete information on how the reorganization and the measures will affect the costs.