HSBC is assessing a substantial reduction in staff over coming years that could affect about 20,000 positions, equivalent to roughly 10% of the bank's global workforce, according to people familiar with the matter. The initiative, still in the preliminary stages, targets middle and back-office work where management believes artificial intelligence can automate or streamline tasks.
CEO Georges Elhedery has identified AI as a central element in efforts to remove some roles in non-client-facing areas, particularly within the bank's global service centres. Those roles have been singled out as among the most exposed if the programme proceeds, though the evaluation has not yet been finalised.
The review of headcount forms part of a wider, ongoing restructuring at the Anglo-Asian lender. Management has been pursuing a strategy aimed at lowering costs, selling non-core assets and redirecting resources toward its core banking operations in Asia. As part of this reshaping, the bank has already targeted a 10% workforce reduction in certain divisions.
Investors have responded positively to the restructuring efforts to date, with HSBC shares trading approximately 35% higher over the past 12 months. That rally has occurred while the bank advances plans to tighten its strategic focus and improve returns.
The discussions at HSBC mirror a broader trend on Wall Street in which firms are exploring AI as a means to replace or reduce roles traditionally performed by humans. The rise of AI agents capable of performing tasks autonomously has increased attention on how much labour can be substituted by software and automated systems.
AI was cited as a contributing factor behind more than 50,000 layoffs in 2025. However, some analysts have questioned whether AI is the primary cause in every instance, suggesting it may sometimes be presented alongside other drivers - including concerns about overhiring after the COVID-19 pandemic - as companies re-evaluate workforce levels.
For now, HSBC's plans remain an assessment in progress. The company has not finalised the scope or timing of any reductions, and those roles identified as potentially vulnerable are concentrated in non-client-facing global service centres. The bank's broader cost-cutting and refocusing programme continues in parallel.