The new HSBC Holdings PLC chief executive plans to reduce the lender’s expensive layer of senior bankers in a restructuring that will aim to save as much as $300 million, the Financial Times reported on Thursday.

According to FT sources, Georges Elhedery is drawing up plans to merge HSBC’s commercial banking unit with its global banking and markets unit in his first big step to cut costs since taking the job last month. 

Preparations are at an advanced stage, with an announcement expected by the end of October, the newspaper said.

‘[The merger] will reduce the top management layers,’ the FT said, citing people familiar with the draft plans.

‘It’s going to affect the senior people and some of the larger roles...That’s the most expensive layer and that’s where the costs are.’

The FT said one option being considered is to put Surendra Rosha, co-chief executive of the bank’s Asia-Pacific business, in charge of commercial and global banking and Patrick George, global head of markets and securities services, in charge of the markets business.

The FT pointed out the hoped-for $300 million in savings would amount to just 1% of the total $32 billion in costs that the bank reported last year.

HSBC is looking for a new chief financial officer to replace Elhedery, who took over from Noel Quinn as chief executive in September.

The FT said Pam Kaur, currently chief risk & compliance officer, is the frontrunner, citing two people with knowledge of the process. 

Shares in HSBC were little changed at 669.20 pence each in London on Thursday morning.

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