【HSBC】HSBC is reportedly considering large-scale layoffs over the coming years due to AI considerations, with approximately 20,000 positions potentially affected

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2026-03-19 04:45:57

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HSBC Holdings (00005)
Reportedly considering large-scale layoffs in the coming years, with Group CEO Georges Elhedery betting on artificial intelligence (AI) to reduce the size of back-office departments. Bloomberg cited sources saying that non-customer service positions at HSBC Global Service Centers are expected to be the most affected, but the assessment is still in early stages. It is said that ultimately about 20,000 jobs could be impacted, accounting for approximately 10% of its total workforce.

Discussions began before the outbreak of the Middle East war

Sources familiar with the matter said that discussions had already started before the outbreak of the Middle East war, and no final decision has been made yet. According to insiders, this assessment includes positions that HSBC will not fill, and some layoffs may also be achieved through the sale or exit of certain businesses.

Sources also stated that HSBC’s layoffs are part of a mid-term plan spanning three to five years.

A Bloomberg report released last year indicated that as AI gradually replaces jobs currently performed by human employees, up to 200,000 jobs could be cut globally in the banking industry over the next three to five years.

Seeing opportunities to reduce costs and improve employee productivity through AI

HSBC Group CFO Pam Kaur recently stated at a Morgan Stanley conference that the bank sees opportunities to reduce costs and improve employee productivity through AI. She mentioned that the company could apply AI in customer service centers, customer due diligence teams, and transaction monitoring to enhance operational cost efficiency.

Since taking office in 2024, Georges Elhedery has undertaken a thorough restructuring of HSBC, cutting thousands of jobs, selling some businesses, and merging or closing others. By the end of 2025, HSBC will have approximately 210,000 employees.

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