HSBC is weighing plans to eliminate as many as 20,000 positions as the banking giant looks to deploy artificial intelligence across its administrative operations.
The proposed cuts would represent roughly 10 per cent of the lender’s 210,000-strong global workforce.
If implemented, the move would rank among the most significant AI-driven workforce reductions ever announced by a single corporation.
With approximately 34,700 staff employed across Britain, a proportionate reduction could see around 3,500 UK jobs disappear, primarily targeting non-customer-facing roles in service centres around the world.
Chief executive Georges Elhedery, who succeeded Noel Quinn in 2024, is examining how AI technology might reduce staffing requirements in back and middle-office functions.
Speaking at a conference on Wednesday, HSBC’s chief financial officer Pam Kaur said the bank sees significant opportunities to use artificial intelligence to cut costs and boost productivity.
She said AI could be deployed across areas such as customer service, know-your-customer teams and transaction monitoring to improve efficiency.
Major bank plans 20,000 job cuts in major AI overhaul
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Plans are not finalised but they are expected to include cutting roles that will not be replaced. Some job losses could also come through business sales or exits, according to reports.
The assessment remains at an early stage, with discussions having commenced prior to the outbreak of conflict in the Middle East three weeks ago, and no definitive decisions have yet been reached.
Since taking the helm, Mr Elhedery has already overseen thousands of redundancies through business disposals and closures, while pivoting the bank’s strategy more firmly towards its Greater China operations.
The bank has declined to comment on the Bloomberg report, though it aligns with remarks Mr Elhedery made during last month’s annual results presentation.
The move would rank among the most significant AI-driven workforce reductions ever announced by a single corporation
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HSBC UKHe stated his intention to harness AI “to simplify processes, procedures and policies and reduce complexity,” whilst also “equipping customer-facing colleagues with the AI tools they need to deliver more personalised services”.
HSBC stands as the second-largest company in the FTSE 100, commanding a market capitalisation of £208billion and serving 14.5million retail customers in Britain alone.
The lender generated profits of $29.9billion last year from a balance sheet totalling $3.2trillion, with its wages, benefits and bonuses bill reaching $19.6billion.
HSBC recently indicated it expects to hit its $1.5billion annualised cost-saving target in the first half of this year, six months ahead of schedule.
Goldman Sachs estimated in February that artificial intelligence was driving between 5,000 and 10,000 monthly job losses in the United States last year
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GETTYThe potential HSBC cuts dwarf recent AI-related redundancies elsewhere in the corporate world, with Amazon having announced 16,000 job losses and Hewlett-Packard planning between 4,000 and 6,000 over three years.
Goldman Sachs estimated in February that artificial intelligence was driving between 5,000 and 10,000 monthly job losses in the United States last year.
A Bloomberg Intelligence report last year forecast that global banks could shed up to 200,000 roles within three to five years as automation transforms the sector.
This week, Close Brothers announced 600 redundancies, citing AI deployment, while chief technology officers surveyed by Bloomberg Intelligence anticipated average workforce reductions of three per cent.