HSBC Holdings is considering cutting up to 20,000 jobs as part of a major restructuring tied to artificial intelligence and cost reduction efforts. The potential cuts could affect around 10% of its global workforce over the coming years. The move reflects increasing pressure on banks to improve efficiency and reduce expenses.

The restructuring is part of HSBC’s broader plan to modernise operations through automation and digital transformation. AI is expected to replace several routine banking functions. This shift is becoming common across the financial sector as institutions seek to remain competitive.

Shares of the bank reacted negatively following reports of the potential cuts, reflecting investor concern about execution risks. However, some analysts believe the long-term cost savings could strengthen profitability. The market is watching closely for official confirmation.

The job reductions, if implemented, would mark one of the largest workforce changes in the banking industry in recent years. It highlights how technology is reshaping traditional financial services. Employees in administrative and support roles are most likely to be affected.

Overall, HSBC’s move underscores a wider trend across global banking. Institutions are increasingly turning to AI to cut costs and improve efficiency. The transformation is expected to continue across the industry.

Source: Reuters.