HSBC to Cut Jobs in UK Wealth Management for AI Initiative
HSBC is set to implement significant job reductions within its UK wealth management division, which will involve a notable decrease in the number of financial advisers and specialised personnel. This move is part of a wider strategy to incorporate artificial intelligence, according to a report on Wednesday. The bank intends to reduce approximately 50% of management and specialist positions within the organization, while the cuts among financial advisers may approach 70%, according to sources familiar with the plans. HSBC does not disclose the number of employees in its UK wealth business; however, it is believed to have hundreds of relationship managers throughout the country, according to the source.
“We’re continuing to evolve to deliver more digitally enabled products and journeys to support our best-in-class wealth service and meet the changing needs of our customers,” the bank said in a statement. The bank is presently undergoing a consultation period regarding the proposed changes, as indicated in the report, which also notes that impacted employees are anticipated to depart by the end of the month. In May, Chief Executive Georges Elhedery articulated at an HSBC investor day event that employees must adapt to AI-driven transformations instead of opposing them, asserting that “generative AI will destroy certain jobs”.
Elhedery has integrated AI as a fundamental component of his strategy since assuming leadership in 2024, utilising the technology across various functions and businesses to streamline operations and tailor content for customers. Banks across the globe have augmented their investments in AI, thereby transforming workforces and resulting in alterations to job roles. This has intensified apprehensions among economists that AI will disrupt traditional industries, with job losses already surfacing in sectors most vulnerable to automation.
