HSBC overhaul by new CEO stumps employees and investors alike

No sense of how many jobs will be axed and how much money the bank could save

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LONDON HSBC Holdings' new chief executive just unveiled the biggest overhaul of the company in at least a decade, but it was missing some key details for employees and investors.

There was, for instance, no sense of how many jobs might be on the chopping block as the lender merged two of its largest businesses and axed some of its longtime regional divisions.

Shareholders were also left wondering how much money the bank would even save after it implements the changes.

Some employees found it difficult to understand where they fit within the company's new organisational structure, according to half a dozen people familiar with the matter. Others felt it was unclear if the bank will still be offering many of its core services in every market.

"These moves seem to make sense," said Mr Ed Firth, a London-based analyst at Keefe Bruyette & Woods. "However, it remains to be seen whether the restructuring charges or cost savings will be that material to the bank." HSBC said it would not be providing further details until it announces full-year results in February. Shares of the company were little changed as investors were left with questions about the financial impact the restructuring would ultimately have.

It all adds to a sense that Mr Georges Elhedery, HSBC's Lebanon-born and French-educated new boss, is a man in a hurry. In just six weeks, he has already reshuffled his senior management twice, kicked off the sales of businesses in South Africa, Malta and France, and signed a key brand partnership with one of the world's biggest airlines, while also plotting a corporate overhaul.