HSBC Holdings Plc is evaluating a fresh round of deep job cuts that could impact as many as 20,000 roles over the coming years, as Chief Executive Officer Georges Elhedery pushes an AI-led transformation, Bloomberg reported, citing people familiar with the matter.
The proposed workforce reduction—primarily targeting middle- and back-office functions—signals how artificial intelligence could begin reshaping global banking operations.
Who could be affected?
According to the report, non-client-facing roles, particularly within HSBC’s global services division, are likely to bear the brunt of the potential layoffs. However, the review remains at an early stage, and no final decisions have been made.
Some roles under assessment may not necessarily be replaced by AI, sources said. Part of the workforce reduction could also come through business exits or divestments.
In total, the changes could impact around 20,000 employees—roughly 10 percent of HSBC’s global workforce—according to one of the sources cited by Bloomberg.
Timeline still uncertain
The potential job cuts are expected to unfold over a medium-term horizon of three to five years, though discussions remain preliminary.
HSBC had about 210,000 employees as of end-2025.
Cost-cutting and restructuring push
The lender has already been undergoing a significant restructuring under Elhedery, who took over as CEO in 2024. The bank has implemented job cuts, exited or merged certain businesses, and streamlined operations.
HSBC recently said it expects to achieve its $1.5 billion cost-saving target six months ahead of schedule.
The bank has not issued an official statement on the reported plans. Sources added that the internal discussions began before the recent escalation in the Middle East and remain ongoing.
AI-driven job cuts gaining momentum
The move aligns with a broader industry trend, where artificial intelligence is expected to significantly alter workforce requirements.
A Bloomberg Intelligence report last year estimated that global banks could cut up to 200,000 jobs over the next three to five years due to AI. Chief information and technology officers surveyed projected an average net workforce reduction of around 3 percent.
The impact of AI-linked layoffs is already visible in the tech sector. So far in 2026, more than 35,000 job cuts have been reported across over 50 companies, according to layoffs tracker Layoffs.fyi.
Major firms including Oracle, Amazon, and Meta have announced workforce reductions, often tied to cost optimisation and increasing adoption of AI.