HSBC Holdings plc is scaling back some of its most valuable staff perks in Hong Kong, cutting benefits covering private club memberships, education and insurance as the banking giant intensifies its restructuring and cost-reduction drive, Bloomberg reported.
Among the changes, mid-level bankers will lose a subsidy covering 50% of the cost of joining a Hong Kong members’ club after Dec 31. The benefit could be worth as much as HK$200,000 (US$25,500).
The move follows HSBC’s decision earlier this month to scrap a long-standing education benefit for new hires and senior employees relocating to Hong Kong.
Previously, the bank covered 95% of school fees, capped at HK$220,000 a year for each child in primary school and HK$300,000 for each child in secondary school.
From 2027, new hires at HSBC Hong Kong and Hang Seng Bank Ltd will also no longer receive the same level of life assurance coverage as existing employees.
Benefits for employees across the two banks will meanwhile be aligned in areas including mortgage perks, medical coverage and life insurance.
“We are focused on investing in our employees competitively,” an HSBC spokesperson said, adding that HSBC and Hang Seng staff continue to have access to learning and development opportunities and a competitive benefits package.
The benefit cuts come as HSBC Chief Executive Officer Georges Elhedery pushes ahead with a sweeping restructuring aimed at simplifying operations and lowering costs.
The lender has already shut its equity capital markets and advisory businesses in Europe and the US while shrinking other operations.
HSBC said in August that its restructuring programme is expected to deliver US$2 billion in total cost savings, up from an earlier target of US$1.5 billion.
The bank is also integrating Hang Seng Bank following the completion of its acquisition in January.
Private members’ clubs in Hong Kong can carry hefty joining and annual fees and have traditionally served as networking, business and recreational hubs for bankers and executives.
The Financial Times first reported the latest benefit reductions.
