The CEO of HSBC is reportedly contemplating cutting 20,000 positions in the upcoming years. These job reductions are expected to affect middle and back-office roles as part of a strategy led by Chief Executive Officer Georges Elhedery to leverage AI for cost savings. It is anticipated that some of the workforce reduction may also occur through divestitures or exits from certain business segments, as per reports from Bloomberg.
The proposed changes are slated to impact approximately 10% of HSBC’s workforce, which currently stands at 210,000 employees, and could unfold over the next three to five years. However, discussions are said to be in the preliminary stages, and no final decisions have been reached yet.
The initiation of talks predates the recent tensions in Iran. HSBC refrained from commenting when approached by the Mirror. Since assuming his role as CEO in 2024, Mr. Elhedery has already overseen the elimination of thousands of positions within the banking institution.
In a recent disclosure, HSBC announced a reduction of £890 million in costs in 2025 following a downsizing of its senior management team.
Previously aiming for £1.1 billion in annual cost savings by the end of 2026, HSBC now anticipates achieving this target by the end of June, six months ahead of schedule. Mr. Elhedery attributed a significant portion of the cost savings to the consolidation of roles within the organization, particularly at higher managerial levels, resulting in a net reduction of 15% in managing director positions.
Additionally, HSBC distributed bonuses totaling £2.9 billion to eligible employees in 2025, marking a 10% increase compared to the previous year. The bank emphasized that top performers received enhanced variable pay rewards compared to the prior year.
In 2025, Mr. Elhedery received a total compensation package of £6.6 million, comprising salary, benefits, an annual bonus, and a long-term incentive award of around £4.8 million. The HSBC pay committee intends to grant him the maximum long-term incentive award of 600% of his salary, amounting to £9 million for the period of 2026-2028, subject to the bank’s performance and delivered in installments.
HSBC reported a decline in pre-tax profit for 2025, down approximately 7% year-on-year to £22.1 billion, citing losses related to its stake in the Chinese Bank of Communications and restructuring expenses from its simplification program.