HSBC has put some staff on short-term “gig economy” contracts as part of an aggressive cost-cutting drive overseen by its new chief executive.

The bank, which has 211,000 employees worldwide, has placed some of its bankers on three-month to six-month contracts ahead of their divisions being closed. Because many still have work to do for their clients, they have been kept on to complete projects but only for the short term.

The arrangement resembles “gig economy” contracts where staff are hired only to complete discreet tasks, employment lawyers said.

“It sounds like the gig economy for banking,” said Emilie Cole, founding partner at Cole Khan. “It doesn’t just have to be Uber or Deliveroo now – it could be banking.”

It is unclear how many bankers have been put on the new contracts. The shake-up, which was first reported by Bloomberg, also involves many vice-chairman roles across the investment banks being axed .

The changes come as Georges Elhedery, HSBC’s new chief executive, tries to slash $1.5bn (£1.2bn) from the bank’s costs by the end of next year. The 160-year-old bank is aiming to lower its wage bill by 8pc, which is likely to mean the loss of thousands of jobs across the UK and other markets.

Mr Elhedery has reorganised the bank’s sprawling empire since he took over in September. He split the bank into four distinct units , compared to its old model of operating under three business lines and five geographical regions.

Controversially, he also split the bank geographically into “east” and “west”, focusing on its two main markets of Hong Kong and the UK. The change sparked speculation that HSBC could be preparing for a break-up as political pressure on the business mounts. The bank has denied there are any plans for a split.

Mr Elhedery has also merged the investment bank and commercial bank into a single division, a move he said would remove duplication, and is also closing a number of divisions as part of the cuts, including exiting dealmaking and stock market services in the UK, Europe and the US. The bank will instead focus these efforts on the Middle East and Asia.

Many of the short-term contracts are for bankers within the divisions being shutdown, meaning they will shortly be leaving the business.

HSBC was contacted for comment. A spokesman told Bloomberg: “We remain committed to supporting clients globally. HSBC is moving to a new, simpler structure as we continue to focus on products and geographies where we can have a clear competitive advantage.”

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