In a bold move to reinforce its return-to-office policy, HSBC has informed retail banking and domestic commercial staff in the UK that their annual bonuses could be cut if they fail to meet the minimum requirement of working from the office three days a week.
According to Bloomberg, the directive places performance-linked pay under scrutiny for those not physically present in office, linking workplace presence directly with compensation. While HSBC UK declined to comment publicly, the message to employees is clear: adherence to office attendance rules is now part of performance assessment.
The policy mimics a similar stance taken earlier this year by Lloyds Banking Group, another FTSE 100 member. Lloyds had announced that bonus decisions would factor in office attendance, though the rule was limited to a relatively small group of senior staff. HSBC’s move appears broader, affecting a wider group of employees within its UK operations.
This development comes at a time of broader strategic shifts within the bank. HSBC is planning to relocate its London headquarters from Canary Wharf to the City’s Square Mile as early as next year. The relocation symbolises not only a change in address but also a continued restructuring of the bank’s physical and strategic footprint across regions.
The tightening of the bonus policy follows a series of staff-related cost adjustments. In February, City AM reported that the bank was preparing to lay off a portion of its investment banking division, even as bonuses were being selectively handed out elsewhere in the firm. More recently, HSBC announced it would cut 348 jobs in France, amounting to nearly 10% of its workforce in the country.
These changes are part of a broader transformation strategy spearheaded by Georges Elhedery, who assumed leadership of the bank’s global operations last year. Elhedery’s plan includes merging HSBC’s commercial and investment banking units, a structural change expected to result in additional job cuts, particularly among senior-level roles.
In another surprising move, HSBC recently cancelled its 2025 UK Corporate and Investor Conference, a key annual event that typically brings together UK business leaders, investors, and analysts. Although the bank scrapped this flagship gathering, it reaffirmed its commitment to its European operations, stating that Europe remains an integral part of its international client strategy.
