HSBC is reportedly discontinuing an education benefit for new employees joining its Hong Kong operations, as well as for staff transferring into the city, marking one of the most generous perks in the local banking sector being scaled back under the leadership of Chief Executive Georges Elhedery as he pushes forward with cost reduction initiatives.

According to sources familiar with the matter, existing band three employees and managing directors who currently receive this benefit will continue to enjoy it, but new hires at the same level and employees relocating to Hong Kong will no longer qualify for the tuition assistance. This move trims a long-standing perk that has been offered to a wide range of banking staff.

Hong Kong stands as the largest market for this British banking giant, and it is the sole major operating hub where HSBC provides tuition subsidies to mid-level employees and above. The benefit covers 95% of school fees, with annual caps of HK$220,000 per child in primary school and HK$300,000 (US$38,240) per child in secondary school.

The subsidy currently applies to several hundred HSBC employees in Hong Kong, costing tens of millions of dollars annually, a figure that has increasingly drawn scrutiny from the London headquarters. Notably, the benefit does not extend to employees of Hang Seng Bank, which HSBC recently took private.