Mumbai, March 19: HSBC is reportedly preparing to cut around 20,000 jobs globally as part of a multi-year strategy to integrate artificial intelligence into its operations. Under CEO Georges Elhedery, the London-headquartered lender is considering a nearly 10% reduction in its workforce over the next three to five years, signalling a major shift toward automation.

Strategic Shift Toward Automation

The planned layoffs are driven by HSBC’s increasing focus on AI to streamline middle and back-office functions. Speaking at a recent Morgan Stanley conference, CFO Pam Kaur said the bank aims to deploy AI across key areas such as customer service, transaction monitoring, and compliance processes including know-your-customer protocols. The move is expected to boost efficiency while lowering operational costs. Meta Layoffs: Tech Giant Weighs Biggest Job Cuts Ever Amid Massive AI Spending Push.

Impact on Workforce

The cuts are likely to affect non-client-facing roles, particularly in global service centres and back-office operations. HSBC may rely partly on natural attrition, choosing not to replace employees who leave, alongside direct redundancies and restructuring-linked reductions. As of late 2025, the bank had about 210,000 employees worldwide, meaning the proposed cuts could impact nearly one in ten workers. Dell Layoffs: Workforce of US-Based Tech Giant Shrinks 10% in Fiscal 2026 Amid Limited Hiring and Cost Cutting, 11,000 People Lose Jobs.

Part of a Larger Industry Shift

HSBC’s plan reflects a broader transformation across the banking sector. Analysts estimate that global banks could eliminate up to 200,000 roles in the coming years as digital adoption accelerates. Roles involving repetitive manual tasks are increasingly being replaced by automated systems, with experts predicting an average 3% workforce reduction across the industry.

CEO’s Restructuring Vision

Since taking charge in 2024, Georges Elhedery has focused on simplifying operations and exiting non-core businesses. The AI-led transformation is seen as the next step in making HSBC a leaner, more tech-driven global bank. While timelines and final numbers remain unconfirmed, the direction signals a significant evolution in how major banks operate in the digital age.

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(The above story first appeared on LatestLY on Mar 19, 2026 06:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).