HSBC Holdings (HKG:0005) dismissed investment bankers on the day they were to receive bonuses, withholding payouts for many as part of CEO Georges Elhedery's aggressive cost-cutting strategy, the Financial Times reported Thursday.

Elhedery aims for major cost cuts, targeting $300 million in 2025 and $1.5 billion annually by end-2026. He has considered scaling back investment banking in Asia and the Middle East, it said.

The London-headquartered bank had said in January that it had plans to shut its merger & acquisition and equity capital markets businesses outside Asia and the Middle East, triggering layoffs, including in Hong Kong, the report said.

HSBC faces pressure to cut costs as benefits from rising interest rates fade. Interest income, accounting for half of its revenue, declined last year. The bank is targeting $1.5 billion in cost savings by 2026, with Elhedery weighing additional restructuring. Meanwhile, his proposed compensation package could hit 19.8 million pounds, it said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)