HSBC is winding down its business banking unit in the U.S. The bank laid off 40 employees earlier this week and notified the unit’s 4,400 clients. “We are supporting clients while they transition to a suitable alternative provider,” an HSBC spokeswoman said. HSBC has been withdrawing from some international markets and focusing on its home markets, Hong Kong and the U.K., as well as Asia.
These moves have accelerated since CEO Georges Elhedery took that role in the fall. Earlier this year, HSBC announced it would stop advising companies on making deals and going public in the U.S. and Europe. Prior to this, HSBC sold its U.S. retail banking business in 2021 and its Canadian operations in 2022.
Hsbc winds down US operations
In the U.S., HSBC still maintains a wealth division, a wholesale bank for big corporate customers, and a growing business focused on startups. The startup-focused business is based on Silicon Valley Bank’s U.K. subsidiary, which HSBC acquired in 2023.
When HSBC announced that Elhedery would become CEO in September, Sir Mark Tucker, HSBC’s chairman, said of Elhedery: “He has a track record of leading through change, driving growth, delivering simplification, and containing costs.”
Elhedery has been with HSBC since 2005 and was serving as the bank’s chief financial officer at the time he was appointed CEO. “Working together with our talented team, I look forward to delivering exceptional value to our clients and investors by driving strong performance on a sustainable growth trajectory,” Elhedery said at the time of the appointment. In October, HSBC announced a restructuring plan that it said would streamline decision-making and eliminate redundancies.
“By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow,” Elhedery said at the time.