HSBC, one of the world’s largest banks, has revealed that it will be moving out of its iconic headquarters in Canary Wharf, London. The bank has been based at 8 Canada Square since 2002, but it has decided to downsize its office space in the wake of the COVID-19 pandemic.
The pandemic has led to a dramatic shift in how people work, with many businesses adopting a hybrid model of remote and in-office work. Changes in the banking industry and increased competition from fintech challengers have also eroded the dominance of traditional banks that need to be much learner in the coming years to compete. HSBC is no exception, and it now expects a significantly reduced number of its employees will be working in the office on a regular basis.
As a result, the bank has decided to move out of its current headquarters, which is too large for its needs and intends to relocate to the City of London in the former head office of BT, a short distance from St Paul’s Cathedral.
The move is a sign of the changing times in the banking industry. As more and more businesses adopt hybrid working models, it is likely that we will see more banks downsizing their office space, and catering for a different working environment – as well as increased competition from market disrupters like Revolut and Wise.
In 2021, HSBC had announced that 1200 employees would work permanently from home in the UK. Other banks around the world since the pandemic announced similar and wide ranging changes with staff relocations and an increase in remote working.
HSBC’s latest move will mean that it begins its full relocation in 2026, leaving just 3 years till the banking giant plans its exit from Canary Wharf ahead of its lease expiration in early 2027.
Will you be affected by HSBC’s relocation?