The risks of payment to the office from HSBC risk the risk of savings, CEO of Denting

CEO George Ilidri will have to make a series of decisions in the coming weeks on whether more space will be obtained for the lender employees in London, Bangalore, Hydear Abad and Guangzhou, people familiar with the issue said, asking not to know the discussion of internal deliberations. One person said that securing the required space to support a return to three days a week in those cities would cost about $ 200 million a year.

HSBC actor rejected the comment.

For ELHEDEY, who has spent the past few months leading the largest organizational reform that has witnessed HSBC decades ago, the issue of office space will be the next decisive issue that must be addressed while facilitating the lender to abandon the hybrid work policies in the era of the epidemic. London banking giant is Vision Asking all its employees to work from one of its offices at least three days a week.

Possible additional expenses are more than 10 % of the money that HSBC hopes to save from the ongoing global restructuring that has witnessed its business and investment banking units and closes integration, acquisition and shares in the subscription departments in the United States, the United Kingdom and continental Europe.

The expansion of the office emissions follows several years that HSBC was aimed at Shrink 40 % global real estate portfolio. Former CEO Noel Quinn got rid of his own office as part of moving towards more hybrid work and around the bank’s executive floor at his headquarters in London to the meeting room area, where he chose hot.

Lack of office

The largest financial group in Europe is already facing a possible shortage of 7700 discs when it moves to a new headquarters in the city of London. It also needs to retreat from the challenge of finding more space for its employees in India and China.

The people said that through the base of the office for a period of three days on the cards, HSBC needs to find approximately 3,000 additional offices in Bangalore, the Indian city, where about 12,500 are employed in its global services and technical units.

Moreover, 3,500 other offices will be needed in the southern Indian city of Hyderabad, where 12,000 others are employed in the roles of technology and support for the bank’s global operations. It is also expected that there will be more than 3,000 shortages in Guangzhou, the southern city of Port, where the bank has more than 14,500 employees working in similar roles.

Failure to obtain the additional capacity may mean that the return of a return to the office from HSBC may be dead upon arrival, with the inability of thousands of employees to find an office space in the bank’s buildings.

In London, HSBC is scheduled to start moving from its headquarters in Canary Wharf next year to move to a new building, but smaller in the city. If the bank does not increase its office emissions at the same time, this means that the London -based employees will not be able to find a office space for more than a day and a half every week, according to people familiar with the situation.

To address this deficiency, the bank is already holding talks to rent several floors near its current headquarters and made in an offer to take over all the empty space on 40 Bank StreetBloomberg News I mentioned This month. He is also considering keeping some of the satellite offices that it planned earlier to abandon them.

In India, HSBC hopes that new offices are ready for employees in early 2027, but to get these final dates, you will need to start signing deals by September, while in China, the rent can be signed for more space during the summer.

SME highlights highlight the need for ELHEDEY and its management team to quickly agree on the strategy of the return to the new office to enable the bank to start dealing with potential capabilities problems.

In the search for space, HSBC is likely to collide with competitors from Wall Street companies to their smaller competitors who likewise seek to increase the area of ​​carpets after real estate reduced in the wake of the epidemic. But it is also possible that they will deal with the width pressure created by cautious developers who wrestle with high construction costs and higher interest rates.