HSBC Joins AI Layoff Wave, Up to 10% Workforce at Risk

As it speeds up an AI-led transition, HSBC is considering a new round of layoffs that would impact up to 20,000 positions, or about 10% of its worldwide workforce. The suggested cuts, which are still being evaluated, would mostly affect administrative and middle-level tasks. Therefore, this marks a more fundamental change in the way that big banks use technology to cut costs and improve efficiency.

By the end of 2025, HSBC had a workforce of approximately 210,000 people. If carried out to completion, the layoffs would be the most massive reorganisation of the bank's employees in recent memory. Georges Elhedery, who assumed the role of chief executive officer in 2024 and has since advocated for a digital transformation and efficiency drive, is overseeing the evaluation. As part of a larger reorganisation, the bank has already got rid of or merged with other businesses and tightened operational structures.

Layoffs Discussions Are in Initial Stage

No final decisions have been made on the layoffs, and the discussions are still in their early stages. The elimination of some positions may not be possible through the use of AI alone; layoffs may also be associated with companies selling off parts of their operations. Although insiders have suggested that the adjustments could unfold over a three to five-year period, the exact timetable for the reduction is still undetermined. Concerning the stated intentions, HSBC has not made an official announcement. The lender is aiming to reach cost targets, which could lead to layoffs. HSBC recently said that it anticipates saving $1.5 billion in costs before the target date.

This reflects the persistent pressure on global banks to become more efficient in the face of changing economic circumstances. The decision is in line with a larger industry trend where AI is starting to change the way people need to be employed. As the use of AI accelerates, global banks could eliminate up to 200,000 jobs in the next three to five years, according to recent media reports. According to the media report, technology leaders surveyed expected a net drop of approximately 3% in the workforce.

AI Pushing More Layoffs in Various Sectors

More than 35,000 layoffs have been announced across more than 50 organisations so far in 2026, according to layoffs tracker Layoffs.fyi. Amazon, Oracle, and Meta are just a few examples of big companies that have recently implemented layoff plans as part of an effort to optimise costs and increase automation. In the financial industry, the effects are anticipated to be diffuse. Operations, processing, and support jobs are more vulnerable to automation, while customer-facing jobs are likely to be more resilient. This change is indicative of a larger structural rethinking of responsibilities within the banking sector, as well as efforts to reduce costs.

Previously labour-intensive regular compliance, processing, and data-heavy jobs are becoming increasingly manageable for AI systems. Concurrently, concerns regarding redeployment and labour reskilling have been raised by the transition. There will be demands on banks from both stakeholders and regulators that they find a happy medium between increasing efficiency and managing their employees responsibly. Whichever way HSBC decides to implement the review's recommendations will depend heavily on the next few months.