HSBC layoffs soon? Wall Street giant may slash 20,000 roles amid AI-led overhaul, says report

HSBC layoffs: HSBC Holdings Plc is deciding on a wave of deep job cuts that could see 20,000 layoffs in the upcoming years as Chief Executive Officer Georges Elhedery bets on an AI-led overhaul, Bloomberg reported citing people familiar with the knowledge of the matter.

Elhedery's reported plans to shrink workforce in HSBC's middle and back office to accommodate AI is one of the first signs that could demonstrate how the technology may reshape the Wall Street in the future.

Who will be affected?

According to the report by Bloomberg citing the persons, non-client facing roles in global service are expected to be impacted the most by the HSBC layoffs. However, the assessment is at an early stage and there was no final decision made.

The assessment also includes roles where HSBC will not replace employees with AI, according to some of the people cited by Bloomberg. A portion of the workforce reduction at HSBC may also come through business sales or exits, as per one person with the knowledge of the developments.

These changes due to the HSBC layoffs could ultimately impact around 20,000 roles — or about 10% of its total workforce, according to one person cited by Bloomberg.

When will the HSBC layoffs happen?

The HSBC layoffs are likely to take place as part of a medium-term plan spanning three to five years, according to the Bloomberg report citing one person.

However, no final decision has been made and the discussions are still in the talking stages.

The bank had around 210,000 employees at the end of 2025.

HSBC said recently it expects to achieve a $1.5 billion cost-savings target in the first half of the year — six months ahead of schedule.

HSBC CEO Elhedery has carried out a radical restructuring of the lender since he took over the role in 2024. Under him, HSBC has already seen thousands of layoffs, while some businesses were sold or merged and others were closed.

HSBC has not yet released a statement on the matter.

The deliberations started before the recent war in the Middle East broke out and no final decision has been made, some of the people cited by Bloomberg said.

AI job cuts

Global banks will eliminate as many as 200,000 positions in the next three to five years as AI encroaches on tasks currently carried out by human workers, according to a Bloomberg Intelligence report last year.

Chief information and technology officers surveyed for BI indicated that on average they expect a net 3% workforce reduction, according to the report.

In 2026, the heat of the AI job cuts are already being felt. So fa this year over 35,000 tech layoffs arcoss 50 tech companies have been reported, as per ndependent layoffs tracker Layoffs.fyi.

Oracle, Amazon, and Meta were some of the biggest companies that slashed jobs — collectively affecting thousands of employees across different segments and regions. These job cuts, often linked to AI, are implemented by companies as they look for ways to slash expenses.