HSBC Holdings is removing a benefit worth up to HK$200,000 that previously provided partial subsidies for private club membership to its Hong Kong bankers, as part of a broader overhaul of employee perks in the Asian financial hub.

According to an internal memo, after December 31, mid-level bankers will lose a subsidy that had covered 50% of the cost of joining a club in Hong Kong.

In addition, the memo said that starting in 2027, new hires at HSBC Hong Kong and Hang Seng Bank will no longer receive the same life insurance coverage as existing employees.

The memo also added that benefits for Hang Seng Bank and HSBC Hong Kong employees will be unified in terms of mortgage discounts, medical coverage, and life insurance.

"We focus on investing in our people in a competitive way," an HSBC spokesperson said in an emailed statement. "Our employees at HSBC and Hang Seng in Hong Kong enjoy extensive learning and development opportunities and competitive benefits."

Under CEO Georges Elhedery, HSBC has been working to restructure and cut costs, closing its equity capital markets and advisory businesses in Europe and the United States while scaling back other business units.

In addition, the bank is also working to integrate Hang Seng Bank and completed the acquisition in January.

In August, the bank said it expected the restructuring plan to achieve US$2 billion in cost savings, higher than its previous target of US$1.5 billion.

Recommended reading: HSBC cuts Hong Kong employee benefits; new and transferred staff no longer receive children's tuition subsidies. Many membership clubs in Hong Kong not only have high initiation fees and annual fees, but also long waiting lists. These clubs are often centers for socializing, business, and leisure, and some also have large sports facilities.