HSBC is considering cutting up to 20,000 jobs globally as it accelerates the use of artificial intelligence to reduce costs and streamline operations, raising fresh concerns about the impact of automation on white-collar roles.
The potential cuts, which could affect around one in ten of the bank’s workforce, would take place over the next three to five years and are expected to focus on non-client-facing roles, particularly in back- and middle-office functions.
HSBC is one of the world’s largest banking and financial services groups, headquartered in London and employing about 210,000 people globally, with roughly 34,700 staff in the UK.
AI drive ‘targets operational roles’
The plans were first reported by Bloomberg, which said the bank’s leadership was exploring how artificial intelligence could reduce the need for staff in administrative and support functions.
The report, citing people familiar with the discussions, said the proposals were at an early stage and a final decision had not been made. A spokesperson for HSBC declined to comment.
The scale of the potential reductions would make it one of the largest AI-linked workforce changes announced by a single employer, with the focus falling on roles where automation can replace repetitive or process-driven tasks.
Chief executive Georges Elhedery, who took over in 2024, has already led a sweeping restructuring of the bank, cutting jobs, exiting some markets and reshaping operations as part of a broader effort to improve efficiency and returns.
Wider banking sector faces AI disruption
The move reflects a growing expectation that artificial intelligence will significantly reshape employment across the financial sector, particularly in operational and support roles.
A Bloomberg Intelligence analysis previously suggested that global banks could eliminate up to 200,000 jobs over the next three to five years as AI systems take on tasks currently handled by human workers.
Senior executives across the industry have increasingly pointed to the dual role of AI in both reducing costs and improving productivity, with banks deploying the technology in areas such as customer service, compliance checks and transaction monitoring.
At HSBC, finance chief Pam Kaur recently signalled that the bank sees AI as a way to improve efficiency and reduce operational complexity while supporting front-line staff with better tools.
The bank is also pursuing a broader shift in how it manages performance, with a greater share of bonuses directed towards top performers and weaker performers encouraged to move on.
Uncertainty over scale and timing
Despite the scale of the reported plans, the proposals remain under discussion and could evolve as the bank continues its review. Some of the reduction in headcount could come through natural attrition, including not replacing departing staff, as well as through business disposals or exits from certain markets.
But the direction of travel is clear, experts say, with AI increasingly being used not just to support employees but also to replace sections of the workforce altogether.
For UK employees, the potential impact remains uncertain. With around 34,700 staff in Britain, any global reduction on the scale being considered could translate into thousands of roles at risk if cuts are applied proportionately.
- William Furney
- William Furney
- William Furney
- William Furney
