London-based investment bank HSBC is contemplating substantial job reductions in the upcoming years under the leadership of CEO Georges Elhedery, who aims to leverage artificial intelligence (AI) for operational streamlining, especially in middle and back-office functions. Reports suggest that non-client-facing positions in global service centers might bear the brunt of these changes, potentially affecting around 20,000 roles, which accounts for nearly 10% of the bank’s global workforce. However, the discussions are still in the early stages, and no final decisions have been made yet.
HSBC’s spokesperson refrained from commenting on these developments, as per the reports. The considerations for restructuring had commenced even before the recent tensions in the Middle East. Since assuming the role of CEO in 2024, Elhedery has initiated a comprehensive restructuring program at the bank, which has already entailed numerous job cuts, as well as the sale, merger, and closure of various business units.
By the end of 2025, HSBC had approximately 210,000 employees. The ongoing evaluation may also involve roles that will not be filled after natural attrition, while some reduction in the workforce could occur through business exits or divestments. This move aligns with a broader trend in the global banking industry, where artificial intelligence is increasingly anticipated to reshape workforce dynamics.
Furthermore, global banks could potentially eliminate up to 200,000 jobs in the next three to five years as AI assumes tasks currently performed by human employees, as highlighted in the report. Chief information and technology officers foresee an average net reduction in the workforce of about 3%. In a related development, Meta Platforms, a major tech company, is reportedly contemplating a significant round of layoffs to enhance operational efficiency through increased investment in AI infrastructure. Internal discussions have raised the possibility of reducing up to 20% or more of Meta’s workforce, equivalent to 16,000 employees based on the company’s headcount of nearly 79,000 at the end of December.
