HSBC Holdings Plc. is planning on permanently implementing a hybrid work model along with reducing business travel and the firm's real estate budget. More than 70% of employees purportedly support the evolved work model.
In the wake of the COVID-19 pandemic and following the bank's cost-cutting program, the travel budget has been reduced to almost 50% and the real estate budget by 40%. In lockdown, nearly all staff worked remotely. Now, HSBC plans on extending these arrangements.
Apart from the adoption of a hybrid work model and cost-cutting measures, the bank will also no longer renew its city centers leases in the foreseeable future. HSBC is adopting the 'two workers per desk' rule and letting go of the executive floor at its Canary Wharf headquarters in London.
A Bloomberg survey showed more than 80% of businesses around the globe are cutting expenses on travel budgets by 20% to 40%.
Noel Quinn, chief executive of HSBC, said employees who are able to work efficiently from home would be permitted to continue working remotely but must also work in the office for three days out of the week.
Citigroup has also announced its own permanent hybrid work model. Meanwhile, other banks such as Goldman Sachs and Morgan Stanley will be operating from the office but with more flexibility.