Is HSBC Going to Cut 20,000 Jobs?

HSBC is considering reducing its headcount by around 20,000 roles over the next three to five years, according to reports from Bloomberg.

These potential cuts, as shared to Bloomberg by sources familiar with the matter, will focus on non-client facing roles, with the company reportedly anticipating that AI will decrease its workforce needs. 

Some of these cuts will come from business sales or natural attrition, but the discussions are in early stages, says Bloomberg. 

While no comment is yet to be made by the company on these rumoured cuts, Pam Kaur, Chief Financial Officer told attendees at a Morgan Stanley Press Conference that the bank was focusing on “staff related inflation,” according to comments seen by S&P Global Market Intelligence. 

She said: “The real shift where we are doing in terms of our investment is really trying to drive operating leverage whether it’s by focusing on scale businesses or indeed focusing on the benefits we can get through AI, whether it’s on better productivity around the revenue line or just the cost benefit. 

“We want to be able to shift the run-the-bank cost to more change the bank.”

Operational reorganisation at HSBC

Georges Elhedery, CEO of HSBC, has already made considerable changes to the company’s operating model since taking charge in 2024, by reorganising divisions, selling some business units and cutting thousands of roles. 

Upon his appointment, Georges said that his plan was to create a “simpler, more dynamic, agile structure at HSBC”, to help “fast forward our plans to execute our strategic priorities.”

The bank had around 220,000 people at the end of 2023 – a number that has since fallen to 210,000. 

This includes a reduction in senior leadership roles, with Georges previously telling Bloomberg’s Leaders with Lacqua programme that he wants senior executives at the company to have more ownership and accountability. 

He said this move allowed the company to go “from 0% single accountability... to now about 60% of our revenue is generated under single accountability. That’s important.”

‘Tremendous’ AI changes

Job roles in the banking industry are evolving as AI develops and adoption increases. 

Citigroup has made plans to reduce its workforce, with CEO Jane Fraser announcing in early 2024 that the company would cut around 20,000 jobs over a two year period to eliminate layers of bureaucracy. 

By early 2026, the company had reduced its workforce by 10,000 people, with Jane telling the Washington Post:  “AI has the potential to make tremendous changes. 

“It’s going to create huge numbers of new jobs that we can’t even imagine what they are today. It will change the nature of what people do every day … And it will take some jobs away.”

Preparing for workforce disruption

JPMorgan Chase is also making changes to its workforce.

Jamie Dimon, CEO of JPMorgan Chase, told shareholders at the company’s annual investor day in January that the company has “huge redeployment plans” for its people as it increases its use of AI. 

He said: “We spoke about it today, and we have to up that a little bit so we can take people who are displaced – and we have displaced people from AI – and we offer them other jobs.”

At the event, he urged business leaders to ensure they are prepared for workforce disruption as AI investments rise. 

“I'm not predicting [it] can be a problem. I'm simply saying now's the time to start thinking about what you do if it does.” He said.