HSBC Holdings Plc is reportedly contemplating significant workforce reductions, potentially affecting up to 20,000 employees. This move is part of a broader strategy led by CEO Georges Elhedery, who aims to integrate artificial intelligence into the bank's operations.
The job cuts are expected to primarily target non-client facing roles within HSBC's middle and back office. While discussions are ongoing, no final decisions have been made regarding the layoffs.
Some reports indicate that the workforce reduction may also involve business sales or exits, rather than solely relying on AI to replace staff. The anticipated cuts could represent about 10% of HSBC's total workforce, which numbered around 210,000 employees at the end of 2025.
These changes are part of a medium-term plan that could unfold over the next three to five years. HSBC has already initiated various restructuring efforts under Elhedery, including previous layoffs and the sale or closure of certain business units.
In terms of financial performance, HSBC recently reported achieving a $1.5 billion cost-savings target ahead of schedule, indicating a focus on efficiency as part of its strategic overhaul.
The discussions regarding the layoffs began prior to the recent escalation of conflict in the Middle East, and the bank has yet to issue an official statement on the matter.
Industry-wide, global banks are projected to eliminate approximately 200,000 positions in the coming years as automation increasingly replaces human labor in various roles. A survey indicated that chief information and technology officers expect an average workforce reduction of about 3% as companies adapt to these changes.
As the landscape evolves, many tech firms have already begun implementing layoffs linked to AI advancements, with over 35,000 tech job cuts reported this year alone.
