HSBC mulls over job cuts that could impact around 20,000 roles from AI-driven overhaul: Sources

SINGAPORE – HSBC Holdings is weighing a wave of deep job cuts over the coming years as chief executive officer Georges Elhedery bets on AI to shrink its middle- and back-office footprint, one of the first signs of how the technology could reshape Wall Street workforces.

Non-client facing roles in global service centres are among those expected to be most impacted, although the assessment is at an early stage, according to people familiar with the matter. The changes could ultimately impact around 20,000 roles – or about 10 per cent of its total workforce, one of the sources said.

The deliberations started before the recent war in the Middle East broke out and no final decision has been made, some of the sources said, asking not to be identified discussing private details.

A spokesperson for HSBC declined to comment.

Mr Elhedery has carried out a radical restructuring of the lender since taking the helm in 2024. He has already cut thousands of jobs, while selling some businesses and merging or closing others. The bank had around 210,000 employees at the end of 2025.

The assessment includes roles where HSBC will not replace staff, some of the sources said, and no final decision has been made. Some of the headcount reduction may also come through business sales or exits, according to one of the sources. 

Global banks will eliminate as many as 200,000 positions in the next three to five years as artificial intelligence encroaches on tasks currently carried out by human workers, according to a Bloomberg Intelligence report in 2025. Chief information and technology officers surveyed for BI indicated that, on average, they expect a net 3 per cent workforce reduction, according to the report.

The HSBC cuts would take place as part of a medium-term plan spanning three years to five years, the source said.

Mr Elhedery has also attempted to drive a cultural change as the bank grapples with competition from local and international rivals. The bank is moving towards a more Wall Street-style compensation model, in which top performers share a larger part of the bonus pool, while underperformers are pushed to look for opportunities outside the company.

The CEO has also doubled down on his predecessor’s Asia-pivot strategy by taking private its Hong Kong subsidiary Hang Seng Bank, a major bet on growth in the Asian financial hub. 

HSBC said recently it expects to achieve a US$1.5 billion (S$1.9 billion) cost-savings target in the first half of the year – six months ahead of schedule.

Speaking at a Morgan Stanley conference on March 18, HSBC chief financial officer Pam Kaur said the bank saw opportunities to use AI both to cut costs and to increase employee productivity. She said it could incorporate AI into areas such as customer service centres as well as know-your-customer teams and transaction monitoring to make its operations more cost-efficient. BLOOMBERG