Global banks will cut up to 200,000 positions over the next 3-5 years
issued Thursday, March 19, 2026 · 09:37 AM
[SINGAPORE/HONG KONG/LONDON] HSBC Holdings is considering a wave of deep job cuts over the next few years as CEO Georges Elhedery bets on artificial intelligence (AI) to shrink its middle- and back-office footprint. This is one of the first signs of how technology will reshape Wall Street’s workforce.
Non-customer-facing roles at global service centers are among the roles expected to be most affected, although the evaluation is in its early stages, said a person familiar with the matter who asked not to be identified discussing the preliminary issue. The changes could ultimately affect about 20,000 roles, or about 10% of the company’s workforce, one of the people said.
Considerations began before the recent outbreak of Middle East wars and no final decisions have been made, said some of the people, speaking on condition of anonymity to discuss personal details.
An HSBC spokesperson declined to comment.
Since taking office in 2024, Mr. Elhederi has carried out a fundamental restructuring of financial institutions. He has already cut thousands of jobs, while selling some businesses and merging or closing others. At the end of 2025, the bank had approximately 210,000 employees.
The review includes roles that HSBC will not fill, and no final decisions have been made, some of the people said. Some of the job cuts could also result from divestitures or exits, one of the people said.
navigating asia
new world order
Get insights delivered to your inbox.
A report from Bloomberg Intelligence (BI) last year found that banks around the world will eliminate up to 200,000 positions over the next three to five years as AI overtakes tasks currently performed by humans. According to the report, a survey of BI chief information technology officers found that, on average, they are expected to see a net 3% reduction in headcount.
The job cuts at HSBC are part of a medium-term plan spanning three to five years, sources said.
Elhederi is also trying to drive cultural change as the bank grapples with competition from domestic and international rivals. The bank is moving to a more Wall Street-style compensation model, with top performers sharing a large portion of the bonus pool while bottom performers are encouraged to look for opportunities outside the company.
Related items
The chief executive also doubled down on his predecessor’s Asia Pivot strategy by taking Hong Kong subsidiary Hang Seng Bank private, a big bet on the growth of Asia’s financial hub.
HSBC recently announced that it expects to hit its $1.5 billion cost savings target in the first half of this year, six months ahead of schedule.
Speaking at Morgan Stanley’s conference on Wednesday (March 18), HSBC Chief Financial Officer Pam Kaul said the bank sees an opportunity to leverage AI to both reduce costs and improve employee productivity. Kaul said the company can incorporate AI in customer service centers as well as areas such as customer awareness teams and transaction monitoring to make operations more cost-effective. bloomberg
Decoding Asia Newsletter: A guide to navigating Asia in the new world order. Sign up here to get the Decoding Asia newsletter. Delivered to your inbox. free.
