HSBC Grapples with Desk Shortage as Staff Return to Office

HSBC is confronting the possibility of significant workspace shortages at its new City of London headquarters following its mandate for employees to return to the office. three days a week .

Senior managers at the lender are predicting a shortfall of up to 7,700 desks when workers move into the bank’s new offices near St Paul’s Cathedral in 2027.

The shortfall, first reported by Bloomberg, comes after HSBC called on staff to return to the office for three days a week as well as an expansion in the size of its workforce.

HSBC is planning to depart from its Canary Wharf headquarters and move into a smaller building, called Panorama St Paul’s, on Newgate Street.

But the move to the City offices will leave HSBC with around half as much space as it currently occupies, with just 556,000 sq ft of floor space at the Newgate Street building compared to the 1.1m sq ft it occupies in its Canary Wharf building.

The downsize could leave it with room for just 4,400 workers in its new building - compared to the 8,000 capacity of its tower at 8 Canada Square in Canary Wharf.

The Newgate Street building, which was formerly BT’s headquarters , is currently being refitted in preparation for HSBC to move in 2027.

The London listed bank now operates a hybrid working policy that requires most of its 40,000 British staff to work from the office for at least three days a week. It currently employs 211,000 staff worldwide.

HSBC’s problems come after US bank JP Morgan also started running out of desk space at its London headquarters.

The investment bank lacked the space in its Canary Wharf office to accommodate all staff after telling 22,000 UK workers to return to the office five days a week.

London staff were told in February they did not have to return to the office until additional desk space was ready.

HSBC’s previous in-house projections have shown that the move to the new offices would leave it with a 5,000-desk shortfall.

The lender, which also has offices in Birmingham , initially requested that employees come back to the workplace in 2023.

In 2002, the bank initially entered its premises at Canary Wharf, after signing a 999-year lease for the skyscraper three years prior.

A spokesperson for HSBC stated: "In 2027, HSBC plans to leave 8 Canada Square and relocate to our new headquarters at St Paul’s."

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