AI shakes banking industry as HSBC prepares 20,000 job cuts
HSBC plans to cut more than 20,000 jobs as the bank accelerates AI and automation adoption to reduce costs and transform operations.
The global financial industry is entering a major period of transformation, with artificial intelligence no longer viewed simply as a support tool but increasingly becoming a core driver of the banking business of the future.
HSBC, Europe’s largest bank, is preparing to cut more than 20,000 jobs — roughly 10% of its global workforce — as it accelerates the adoption of artificial intelligence and automation technologies across the organisation in a bid to reduce costs and improve operational efficiency.
Reports said most of the affected employees would come from support functions and middle-management roles that are not directly involved in customer-facing services. The restructuring forms part of the bank’s broader transition towards a more digitally driven operating model.
Georges Elhedery, chief executive of HSBC Holdings, said the expansion of AI within the bank would replace some middle-management and support positions across various business divisions.
He said the impact of AI on certain roles within the financial sector was unavoidable, although the technology would also create new types of jobs in the industry.
Elhedery added that employees should embrace AI-driven changes rather than resist them, while working together with the bank to adapt to emerging technologies.
The remarks were made during the bank’s investor conference on May 20, following a similar move by Standard Chartered, which earlier announced plans to cut thousands of jobs by 2030 as it expands the use of automation and AI in its operations.
HSBC had previously appointed David Rice as the bank’s first chief AI officer to spearhead the integration of artificial intelligence into its business strategy, with the aim of boosting shareholder returns through cost reductions and more efficient workflows.
