HSBC’s chief executive is reportedly contemplating cutting 20,000 jobs in the coming years. The reduction is expected to affect middle and back-office roles, with the CEO, Georges Elhedery, pinning hopes on AI to drive cost savings. Some of the job cuts may also result from business divestitures.
This move would impact approximately 10% of HSBC’s workforce of 210,000 and could unfold within the next three to five years. However, discussions are said to be at a preliminary stage, with no final decisions reached yet.
Notably, talks on the job cuts began before the outbreak of the Iran conflict. HSBC declined to comment on the matter. Elhedery assumed the CEO position in 2024 and has already overseen the elimination of numerous roles at the bank.
Recently, HSBC disclosed that it slashed costs by £890 million in 2025 after streamlining its senior management team. The bank initially aimed to achieve £1.1 billion in annual cost reductions by the end of 2026 but now anticipates reaching this target by June, six months ahead of schedule.
Elhedery mentioned that a significant portion of the savings stemmed from job consolidation, especially in higher-ranking positions, leading to a 15% reduction in managing director roles. Despite the cost-cutting measures, HSBC distributed bonuses totaling £2.9 billion to eligible employees, marking a 10% increase from the previous year.
Elhedery’s total earnings for 2025 amounted to £6.6 million, including salary, benefits, an annual bonus, and a long-term incentive award. The bank’s pay committee intends to grant him a maximum long-term incentive award of £9 million for 2026-28, subject to the bank’s performance over the next three years.
HSBC’s pre-tax profit for 2025 dropped by around 7% year-on-year to £22.1 billion, reflecting losses linked to its investment in the Chinese Bank of Communications and restructuring expenses from its simplification program.