HSBC plans to lay off 20,000 employees in AI-led overhaul
What's the story
HSBC is contemplating a major job cut over the coming years as part of an AI-led overhaul strategy. The move could see up to 20,000 employees losing their jobs, or about 10% of its total workforce. The decision-making process is still in its early stages and no final decisions have been made yet.
Impacted positions
Most cuts will be in global service centers
The potential job cuts will mostly affect non-client facing roles in global service centers. Some of the positions may not be replaced by AI, and a part of the headcount reduction could also come through business sales or exits. The changes are part of a medium-term plan that spans three to five years, according to Bloomberg.
Strategic changes
Ongoing restructuring under CEO Elhedery
Since taking charge in 2024, HSBC CEO Georges Elhedery has led a major restructuring of the bank. This includes thousands of job cuts, business sales, and mergers or closures. The bank had some 210,000 employees at the end of 2025. Despite these changes, HSBC recently announced it expects to hit a $1.5 billion cost-savings target six months ahead of schedule.
Future plans
Cultural shift at HSBC amid AI integration
HSBC is looking to integrate AI into its operations, particularly in customer service centers and transaction monitoring. This move is part of a larger cultural shift at the bank, where top performers will get a bigger share of the bonus pool while underperformers will be encouraged to seek opportunities outside. The changes come amid growing competition from local and international rivals.