Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

HSBC slashes costs by 8% in $1.5bn drive as it scales back net-zero pledges

by February 20, 2025
February 20, 2025
HSBC slashes costs by 8% in $1.5bn drive as it scales back net-zero pledges

HSBC has unveiled plans to cut staffing costs by 8% in a push to save $1.5 billion, with thousands of UK employees expected to bear the brunt of the losses.

Georges Elhedery, the bank’s chief executive, announced that while HSBC’s 211,000-strong headcount will shrink by less than 8%, the overhaul will nonetheless involve significant job cuts and additional expenses of around $1.8 billion in severance and restructuring charges.

The move follows a series of corporate changes at the Asia-focused lender, including the merger of its wholesale businesses and a decision to pare back the underperforming investment bank. HSBC has also closed Zing, a digital payments venture, after just one year, as Elhedery focuses on cutting duplication and shifting resources to higher-growth areas, such as wealth management in Asia.

Alongside the restructuring, HSBC reported a 6.5% jump in annual profits to a record $32.3 billion, beating analysts’ forecasts. The FTSE 100 giant confirmed a fresh $2 billion share buyback and declared a quarterly dividend of 36 cents per share, returning a further $6.4 billion to investors.

The staff bonus pool inched higher to $3.8 billion from $3.77 billion, despite the headcount reductions. Meanwhile, HSBC plans to lift Elhedery’s potential pay package, which could reach £15.3 million this year, or up to £19.8 million if the bank’s share price rises by 50%.

In a separate announcement, the bank postponed its target date for achieving net-zero emissions from its own operations and supply chain from 2030 to 2050. The move comes as HSBC also launches a review of its 2030 goals for financed emissions — the carbon footprint of companies it lends to.

Elhedery said suppliers have lagged in their own sustainability efforts, making it harder for HSBC to meet near-term targets. The decision follows US banking giants withdrawing from the Net Zero Banking Alliance amid a domestic backlash, prompting questions about the global banking sector’s dedication to climate pledges.

Environmental, social and governance (ESG) metrics in Elhedery’s performance-based awards are being scaled back from 25% to 20%, to allow a higher weighting on what the bank calls “value creation”. Critics, however, see this as evidence that HSBC is easing off stringent climate targets in response to market pressure.

Read more:
HSBC slashes costs by 8% in $1.5bn drive as it scales back net-zero pledges

0
FacebookTwitterGoogle +Pinterest
previous post
Mira Murati, OpenAI’s former CTO, launches new ai start-up with ex-ChatGPT colleagues
next post
What Legal Preparations Are Needed Before Trading Crypto CFDs?

You may also like

Three-quarters of UK businesses struggling to source staff,...

October 9, 2023

Staff want financial education from employers, but few...

September 19, 2023

Hospitality sector pleads for help when Covid business...

January 16, 2023

Train drivers announce new week-long overtime ban

July 25, 2023

Keter’s Curver Brand Celebrates 75 Years of Bringing...

April 4, 2024

Michelle Mone’s husband linked to three tax avoidance...

January 23, 2023

Joules sounds the alarm over possible loan default...

November 8, 2022

Octopus unveils renewables fund backing UK’s largest battery

August 25, 2022

Tech leaders debate UK’s skills crisis in Parliament

November 28, 2023

Mike Lynch Acquitted of All Fraud Charges in...

June 6, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Justice Barrett teases new memoir in abrupt conference exit

      August 19, 2025
    • Schiff launches legal defense fund in response to claims Trump is ‘weaponizing’ justice system

      August 19, 2025
    • Gabbard removes clearances from 37 officials at Trump’s direction over politicizing intelligence

      August 19, 2025
    • Latest Education Survey: Good News for Private Choice, Bad for Public Schooling, Sobering for Ending Fed Ed

      August 19, 2025
    • Trump’s push for Putin-Zelenskyy talks hinges on Kremlin’s conditions

      August 19, 2025
    • Israel eliminates Gaza terrorist who took part in October attack on kibbutz, took Yarden Bibas hostage

      August 19, 2025

    Categories

    • Business (8,826)
    • Investing (2,221)
    • Politics (16,436)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved