HSBC Holdings ( HSBC ) is reportedly making significant changes to its investment banking operations as part of a restructuring plan led by CEO Georges Elhedery.

The bank will shut down key parts of its investment banking business in the U.K., Europe, and the Americas, including its mergers and acquisitions advisory and equity capital markets units outside Asia and the Middle East, Financial Times reports, citing an internal memo.

However, HSBC ( HSBC ) will retain its debt capital markets, leveraged finance, real asset finance, and infrastructure finance businesses in these regions, per the report.

 This move aligns with Elhedery's broader strategy of dividing the bank into "eastern" and "western" units to streamline operations, the report adds.

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Investment banking currently accounts for only 6% of HSBC's ( HSBC ) total revenue, a segment that has seen a decline of 3% year-over-year in the first half of 2024.

The number of job cuts resulting from Tuesday’s unexpected announcement remains unclear, as do the potential savings and how many bankers might be reassigned to other financing sectors, Reuters reports.

HSBC ( HSBC ) recently launched the “HSBC CommunityWorks Opening Doors” initiative, offering home loan grants in underserved U.S. counties to assist homebuyers.

According to Benzinga Pro, HSBC ( HSBC ) stock has gained over 30% in the past year. Investors can gain exposure to the stock via The 2023 ETF Series Trust II GMO International Value ETF .

Price Action: HSBC ( HSBC ) shares are trading lower by 0.80% to $51.69 at last check Tuesday.

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