HSBC Holdings is slowing down hiring and instructing investment bankers to reduce travel and entertainment expenses, according to a Bloomberg report.
The report further adds that sources familiar with the situation said the bank is not replacing staff who have left or resigned in recent months, and certain business units have been instructed to pause hiring altogether.
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However, this hiring freeze is not intended to affect client-facing roles.
Bloomberg also reports that Investment bankers have been encouraged to set up at least three client meetings a day to maximize work travel. Employees in some divisions were reminded of these expectations at a recent company town hall.
HSBC's cost-cutting measures suggest that lenders are preparing for central banks to begin lowering interest rates in the coming months, signaling an end to the period of high rates that have boosted profits for large global banks like HSBC in recent years.