Interviews are already underway, according to people familiar with the matter, essentially pitting senior staff who came from the commercial banking division against those from the global banking and markets unit to compete for the jobs available in the combined CIB division. 

The process will result in the British bank beginning to dismiss several hundred managing directors and other senior bankers in the coming weeks, the people said, asking not to be identified discussing private deliberations. As part of the shake-up, HSBC will phase out its use of the general manager titles that it gives to some of its most senior staff and will instead give those employees managing director titles, a common rank at many major financial services businesses, the people added. 

No final decisions have been made and the plans could change, they said. A representative for London-based HSBC, which employs roughly 215,100 staff worldwide, declined to comment.

The latest job cuts — aimed at cost savings and long telegraphed since the sweeping overhaul unveiled on Oct. 22 by Elhedery — come as the 159-year-old lender faces pressure on profit margins from a rate-cutting cycle by monetary authorities around the world. HSBC has reduced its headcount by more than 100,000 over the past 16 years as a series of CEOs tried to streamline the bank’s sprawling global operations. 

Several belt-tightening measures have failed to contain HSBC’s operating expenditure, which rose slightly to $8.1 billion last quarter, while the lender’s share performance this year has lagged behind peers such as Barclays Plc and Standard Chartered Plc despite roughly $35 billion in buybacks in the past 18 months.

Under the revamp, Michael Roberts was appointed to lead the corporate and institutional banking division, while a new international wealth and premier banking business is being overseen by Barry O’Byrne.

Roberts told Bloomberg Television earlier this month that the restructuring will be done in a “thoughtful way” and the new management structure would be in place by February, when the company is set to share the full details.

The lender will also see changes to its geographical divisions. It will have an Eastern regional unit including Asia Pacific and the Middle East, and a Western market that includes its non-ring-fenced bank in the UK, Europe and the Americas. Hong Kong and UK will be standalone units. 

In an earnings call with investors on Oct. 29, Elhedery emphasized that his restructuring plan isn’t about splitting up the bank but rather about simplification of its operations. He warned that senior managers would be the main targets of any related job losses, adding the move would result in net cost savings.