HSBC Considers Job Cuts Amid AI Push

HSBC Holdings, the global banking giant, is looking into major job reductions in the coming years, as reported by Bloomberg. CEO Georges Erhederi is focusing on leveraging artificial intelligence to streamline the middle and back offices.

The main impact is anticipated to be on non-customer-facing roles, particularly in global service centers, although the evaluation is still in its early stages. Some insiders mentioned that this initiative could potentially lead to about 20,000 job losses, which would account for roughly 10% of the workforce.

The evaluation process kicked off prior to the conflict in the Middle East, and it’s worth noting that no final decisions have been made yet.

Interestingly, some reports highlight that the assessment also encompasses positions that may go unfilled, but the resolution on specifics is still pending. There are also indications that downsizing might happen through the sale of parts of the business.

According to a source familiar with the situation, the job cuts are expected to be part of a medium-term strategy extending over three to five years.

HSBC has not commented on this report, although it does state on its website that it is among the largest banking and financial services organizations in the world and is actively pursuing AI technologies.

In its annual report, the bank noted that in 2025, it accelerated the use of generative AI and plans to deepen AI integration into its core operations going forward.