HSBC’s CEO is reportedly contemplating cutting 20,000 jobs in the coming years, focusing on middle and back-office roles to reduce costs using AI technology. Around 10% of HSBC’s 210,000 workforce could be affected by these changes within the next three to five years. However, discussions are in early stages, and no final decisions have been reached yet.
The initiative to streamline operations predates recent events, according to sources. Since taking the helm in 2024, CEO Georges Elhedery has already overseen the reduction of thousands of roles at the bank. Last year, HSBC announced a reduction of £890 million in costs by downsizing its senior management team.
The bank had aimed to achieve £1.1 billion in annual cost savings by the end of 2026 but is now on track to meet this target earlier, by June. Elhedery attributed a significant portion of these savings to job consolidation, especially in senior positions, resulting in a 15% decrease in managing director roles. Additionally, HSBC distributed bonuses totaling £2.9 billion to eligible staff in 2025, a 10% increase from the previous year.
Elhedery’s total earnings in 2025 amounted to £6.6 million, including his salary, benefits, annual bonus, and long-term incentive award. The bank’s pay committee plans to grant him a long-term incentive award of up to £9 million for 2026-2028, contingent on the bank’s performance over the next three years. HSBC reported a 7% year-on-year decline in pre-tax profit to £22.1 billion for 2025, citing losses related to its stake in the Chinese Bank of Communications and restructuring costs from its simplification program.