HSBC The banking giant is reportedly considering widespread job cuts as it increases its reliance on AI.
According to Bloomberg News, the plan is still being developed, but the job cuts will likely focus primarily on non-customer employees at the bank’s service centers. reported Thursday (March 19), citing people familiar with the matter.
The cuts could ultimately affect about 20,000 positions, or 10% of HSBC’s workforce, one source said. Other sources said talks predate the Iran war and no final decision has been made.
PYMNTS has reached out to HSBC for comment but has not yet received a response.
As Bloomberg points out, HSBC CEO Georges Erhedery He has since overseen a major overhaul of the bank. be that leader 2024. change This includes job cuts and the sale, merger or closure of some of HSBC’s businesses.
In this current effort, some of the positions being considered include those that HSBC will not fill, and some of the job cuts could come from divestitures or exits, the people said, Bloomberg reported.
Advertisement: SCROLL TO CONTINUE
We want to be your favorite news source.
Add us to your preferred sources list to see our news, data, and interviews in your feed. thank you!
Bloomberg added that independent research shows banks around the world could cut up to 200,000 jobs over the next three to five years as artificial intelligence (AI) takes over tasks typically performed by humans.
PYMNTS investigated this trend last month and found that important developments AI in the financial industry is invisible to customers.
“They are deployed inside compliance queues, cash management dashboards, and payment routing engines. AI agent “They now initiate tasks and move funds based on live signals. This transition is the first real test of whether financial institutions trust AI with operational authority,” the report said.
Meanwhile, a recent PYMNTS Intelligence study found that many workers believe their skills will remain valuable even as technology advances.
The research is labor economyor people who do “labour-intensive, task-based or contingent work, such as gig work, freelancing, contracting, or hourly roles.” In contrast, non-labor economy workers are typically salaried employees in stable roles with predictable salaries, long-term employment contracts, and more defined career paths.
“If some of our employees are concerned about this issue, The threat of roboticsthat would be them. However, the data suggests that change has not yet occurred,” PYMNTS wrote.
As a result of the research, 65.3% of labor economy workers 73.7% of respondents are confident that their skills will remain valuable in the face of technological change, compared to 73.7% of non-labor economy workers.
“This gap reflects increased exposure and uncertainty, not short-term replacement expectations,” PYMNTS added.
