HSBC Plans 20,000 Job Cuts Amid AI-Driven Overhaul
HSBC Holdings Plc is considering significant job reductions in the coming years as Chief Executive Officer Georges Elhedery places his confidence in AI to streamline its middle and back offices, marking one of the initial indications of how this technology may transform Wall Street employment structures. Non-client facing roles in global service centres are anticipated to be significantly affected, although the evaluation is still in its initial phases, according to sources familiar with the situation. According to source, the changes could ultimately affect approximately 20,000 positions, which represents about 10 percent of the total workforce.
A representative for HSBC chose not to provide a comment. The bank’s shares fell by 2 per cent as of 8:36 am in London. Since assuming leadership in 2024, Elhedery has implemented a comprehensive restructuring of the lender. He has already eliminated thousands of jobs, while divesting certain businesses and either merging or shutting down others. At the conclusion of 2025, the bank employed approximately 210,000 individuals. According to some individuals, the assessment encompasses roles in which HSBC will not be replacing staff, and a final decision has yet to be reached.
According to a report from last year, global banks may cut up to 200,000 jobs in the next three to five years as AI begins to take over tasks that are currently performed by humans. According to the report, chief information and technology officers surveyed by BI indicated that, on average, they anticipate a net 3 percent reduction in workforce. According to sources, the HSBC cuts would be implemented as part of a medium-term plan that spans three to five years. The potential cuts could reduce annualised group expenses by 5 per cent to 6 per cent. Elhedery has also sought to instigate a cultural shift as the bank contends with competition from both local and international rivals.
It is shifting towards a compensation model reminiscent of Wall Street, where top performers receive a greater share of the bonus pool, while those who underperform are encouraged to seek opportunities beyond the company. The chief executive has reaffirmed his predecessor’s Asia-pivot strategy by privatizing its Hong Kong subsidiary Hang Seng Bank Ltd, marking a significant investment in the growth of the Asian financial hub. HSBC announced recently that it anticipates reaching a cost-savings target of $1.5 billion in the first half of the year.
