HSBC’s CEO is reportedly contemplating cutting 20,000 jobs in the coming years, primarily affecting middle and back-office roles. CEO Georges Elhedery is looking to leverage AI to drive cost reductions, and some job cuts could result from business divestitures or exits. This downsizing would impact approximately 10% of HSBC’s workforce of 210,000 and may unfold over the next three to five years, although final decisions are pending.
The talks about job cuts began before the recent geopolitical tensions. HSBC declined to comment on the matter. Since assuming the role in 2024, Mr. Elhedery has overseen significant job reductions at the bank. In 2025, HSBC disclosed cost savings of £890 million after streamlining its senior management team.
Initially targeting £1.1 billion in annual cost savings by the end of 2026, HSBC now anticipates achieving this goal by June, six months ahead of schedule. Mr. Elhedery highlighted that a substantial portion of the savings stemmed from job consolidations within the organization, particularly at higher levels. The bank awarded £2.9 billion in bonuses to eligible employees in 2025, marking a 10% rise from the previous year.
While emphasizing rewarding top performers, HSBC mentioned that Mr. Elhedery received a total compensation package of £6.6 million in 2025. The bank’s pay committee intends to grant him a maximum long-term incentive award of £9 million for 2026-2028, contingent on the bank’s performance over the next three years. Despite reporting a 7% decrease in pre-tax profit to £22.1 billion in 2025, HSBC attributed this to losses related to its investment in the Chinese Bank of Communications and restructuring expenses from its simplification initiative.