HSBC Holdings has instructed hundreds of managers to reapply for positions in its newly created corporate and institutional banking division as Chief Executive Officer Georges Elhedery seeks to streamline operations and improve efficiency across the bank.

Interviews are already in progress with senior staff from both the commercial banking division and the global banking and markets unit competing for roles within the newly integrated corporate and institutional banking division, according to a Bloomberg report citing sources familiar with the situation.

The process is expected to lead to the dismissal of several hundred managing directors and senior bankers in the coming weeks, as per the report. As part of the restructuring, HSBC plans to retire its general manager titles for senior staff, replacing them with managing director titles— a more common designation used by many major financial institutions.

No final decisions have been made, and the plans remain subject to change, according to the report.

The latest round of job cuts — part of a broader cost-saving strategy long anticipated since the overhaul announced by Elhedery on October 22 — comes as the 159-year-old bank faces mounting pressure on profit margins due to global interest rate cuts. Over the past 16 years, HSBC has reduced its workforce by more than 100,000 as successive CEOs have sought to streamline the bank’s extensive global operations.

Despite several cost-cutting measures, HSBC's operating expenses edged up slightly to $8.1 billion last quarter. Meanwhile, this year's stock performance has underperformed compared to rivals like Barclays Plc and Standard Chartered Plc, despite $35 billion in share buybacks over the past 18 months. 

As part of the ongoing restructuring, Michael Roberts was appointed to lead the Corporate and Institutional Banking division, while Barry O'Byrne will oversee a newly created International Wealth and Premier Banking business.

Roberts told Bloomberg Television earlier this month that the restructuring will be carried out "thoughtfully," with the new management structure expected to be in place by February, when the bank will release full details.

The bank will also restructure its geographical divisions, creating an Eastern regional unit that includes Asia Pacific and the Middle East and a Western market unit encompassing the UK, Europe, and the Americas, with Hong Kong and the UK forming standalone units.

During an earnings call on October 29, Elhedery stressed that the restructuring is focused on simplifying operations, not breaking up the bank. He indicated that senior management would be the primary target of job cuts, with the goal of achieving net cost savings.