HSBC Holdings plc HSBC plans to reduce its workforce in France by 348 jobs, accounting for approximately 10% of its staff in the country. This move is part of the overall cost-cutting strategy by CEO Georges Elhedery, aiming to reduce the expense by $1.5 billion by 2026. 

The job reductions will be implemented through a voluntary redundancy scheme, allowing employees to exit on mutually agreed terms. These cuts are part of a broader program aimed at simplifying operations and enhancing efficiency in an increasingly competitive landscape.

This comes after the sale of HSBC’s French retail banking business in early 2024 and the announcement of the impending divestiture of its French life insurance arm in December. The bank has been undertaking a global restructuring of its operations, with a focus on markets where it anticipates higher profitability. It has divested businesses in the United States, Canada, Greece, New Zealand, Argentina and Armenia, as well as the retail banking operation in Mauritius. Furthermore, HSBC is scaling back its mergers and acquisitions and equity capital markets operations in the United States, the U.K. and Europe, while focusing on profitable regions such as Asia and the Middle East. 

Simultaneously, HSBC intends to redeploy an additional $1.5 billion from the low-returning activities or non-core operations into core business areas, reinforcing its focus on the Asia region. The bank is progressing with divestment in Germany, Bahrain and South Africa and is reviewing its operations in Malta. 

Shares of HSBC have gained  26.5% in the last six months compared with the industry’s growth of 19.6%. Zacks Investment Research

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Currently, HSBC carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Banks

Similar to HSBC, many other global banks are restructuring their business models amid inflation, increased interest rates and regulatory overhauls. Last year, Barclays PLC BCS initiated job cuts across its investment banking and research divisions, according to people familiar with the matter. This move aligns with the company’s £2 billion cost-cutting program to boost profitability. 

Several hundred staffers in global markets, IB and research will be impacted by this move. BCS’ plans to reduce its personnel in the IB division, including trading, advisory services, capital market operations and the international corporate bank.

Similarly, in December 2024, UBS Group AG UBS announced its plan to cut jobs in France amid the country's sluggish economic growth and ongoing efforts to integrate Credit Suisse following its acquisition in June 2023.

Although UBS has emphasized that the integration process has been smoother than expected, merging the two banking giants still requires significant operational adjustments. As part of this effort, UBS is re-evaluating its global operations, with France being one of the regions under review.

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