HSBC paid $67.5 million in severance to its most senior staff. The layoffs affected 134 employees classified as material risk takers. This marks the largest cull of senior bankers at the firm since the 2008 financial crisis.
CEO Georges Elhedery initiated the cuts to simplify the bank's structure. The strategy aims to remove management layers and reduce corporate complexity.
HSBC closed its equity capital markets and M&A advisory businesses in the US, UK, and Europe. The lender will reallocate capital from these divisions to core business areas. The restructuring targets $1.5 billion in annualized cost reductions.