HSBC Holdings The PLC predicts hundreds of millions in additional real estate costs as it focuses on asking its employees further to return to the office, likely to prevent the bank from its bid to earn $ 1.5 billion in annual cost savings.
Chief Executive Officer Georges Elhedery will have to make several decisions in the coming weeks about getting more desk for the London, Bangalore, Hyderabad and Guangzhou staff members, people who know it said, asking not to be recognized to discuss internal talks. Getting the required opportunity to help return for three days a week in those cities would cost about $ 200 million a year, one of the people said.
The HSBC representative refused to comment.
For Elhedery, who has spent a few months ago driving the biggest organization has seen in decades, the question of office space will be an important issue of handling when the lender is preparing to calm its hybrid policies. The biggest London bank is Focus on Ask all his employees to work from one of his offices at least three days a week.
Possible additional expenditures are more than 10% of the money HSBC expects to save from its ongoing reform of the world that you have seen combining its commercial and investment units and closing its inclusion with its purchase and literary division in America, England and the mainland.
The expansion of office footsteps follows several years that HSBC targeted shine Its real estate in the world by 40%. Former CEO Noel Quinn even withdrew his personal office as part of a more hybrid move to work and convert the bank's floor to his London headquarters to be more space for the conference room, as he decided to get a fire desk.
Shortage of the desk
The largest European financial group is already facing a shortage of 7,700 desk while traveling to a new headquarters in London. It also requires square to the challenge of finding more space for its employees in India and China.
Despite a three -day law on a card on a card, HSBC needs to get about 3,000 desks in Bangalore, India where it employs around 12,500 in its world services and technology units, people said.
In addition, more than 3,500 desks will be needed in the southern India city of Hyderabad, where it employs more than 12,000 in technology and support responsibilities for the bank's operations, they said. More than 3,000 desk is also a forecast for Guangzhou, the port city of South China, where the bank has more than 14,500 employees employed in such responsibilities.
Lack of extra capacity means the HSBC's return to the office may be dead on arrival, and thousands of employees cannot find a desk space at bank buildings.
In London, HSBC is due to start moving out of its Canary Wharf headquarters next year to move to a new, but small building in the city. If the bank did not extend its office at the same time, it means London employees will not be able to get a desk space for more than a day and a half every week, according to people who are aware of the situation.
To address the deficit, the bank is already in talks to rent several floors near its current headquarters and has set off to take all the empty space to 40 Bank BankBloomberg News reported This month. It also focuses on preserving other satellite offices that had planned in advance.
In India, HSBC expects to have a new office ready for employees in early 2027, but hitting these last dates will need to start signing contracts by September, when China renting more space can be signed in the heating season.
The last dates show Elhedery's demand and his management team quickly agree on the new return-to-office strategy to enable the bank to start addressing capacity issues.
In its space hunting, HSBC is likely to run into competitors ranging from Wall Street Majors to young opponents who are also looking to increase the carpet area after slashing real estate after the disaster. But they are also likely to argue with the distribution of distribution created by cautious developers who collide with construction costs and high interest rates.