HSBC Holdings Plc is planning significant job cuts across its UK management business as the bank steps up its use of artificial intelligence to serve affluent customers more efficiently, according to a Bloomberg report citing people familiar with the matter.
The proposed restructuring could see the bank eliminate around half of its management and specialist positions in the UK wealth division, while the number of financial advisers could fall by nearly 70%, the report said.
HSBC in consultation over restructuring
is currently consulting employees over the proposed changes, according to the report.
Employees affected by the restructuring are expected to leave the bank by the end of the month. The Financial Times had earlier reported on HSBC’s plans to reduce jobs in the division.
“HSBC UK is a long-established, leading UK wealth manager and premium banking provider,” a spokesperson for HSBC said in a statement. “We’re continuing to evolve to deliver more digitally-enabled products and journeys, to support our best-in-class wealth service and meet the changing needs of our customers.”
The proposed cuts form part of a wider cost-cutting and simplification programme being implemented by HSBC Chief Executive Officer Georges Elhedery.
CEO Elhedery backs AI to improve productivity
Elhedery, who became HSBC’s CEO in September 2024, has made cost reduction and greater operational efficiency key priorities for the bank.
He has also been a strong advocate of using AI to improve employee productivity. In an interview with Bloomberg TV in August, Elhedery said he would be “extremely happy” if HSBC employees became more productive through the use of AI tools.
The CEO has also said he personally monitors the bank’s AI-related spending, including costs associated with software licensing and AI tokens.
The expansion of AI across the financial services industry is increasingly raising concerns over job security, particularly in roles involving routine or administrative work.
Banks accelerate AI-driven job cuts
HSBC is not alone in looking to reduce its workforce through automation and AI.
Plc Chief Executive Officer Bill Winters warned in May that AI could eliminate thousands of jobs at the bank. The lender has announced plans to reduce its support workforce by more than 15% by 2030 as it seeks to achieve greater efficiency through automation and AI.
The developments highlight the growing impact of AI on the banking industry, as lenders seek to balance investment in technology with cost reduction and changes in traditional roles.