HSBC’s CEO is reportedly contemplating cutting 20,000 jobs in the coming years to streamline operations. The restructuring, led by Chief Executive Officer Georges Elhedery, is expected to focus on leveraging AI to drive cost efficiencies primarily in middle and back-office functions. Potential reductions in headcount could also arise from divestitures or closures, as per reports.
Around 10% of HSBC’s workforce, totaling 210,000 employees, may be affected by the proposed changes within the next three to five years. However, discussions are still at a preliminary stage, and no definitive decisions have been reached yet. These discussions predate the recent conflict in Iran. HSBC declined to provide further details on the matter.
Since assuming the role of CEO in 2024, Mr. Elhedery has already overseen significant job cuts within the bank. Recently, HSBC announced cost savings of £890 million in 2025 following reductions in its senior management team.
Originally aiming for £1.1 billion in annual cost reductions by the end of 2026, HSBC now anticipates achieving this goal by the end of June, six months ahead of schedule. Mr. Elhedery attributed a substantial portion of the savings to job deduplication, particularly in higher-ranking positions, resulting in a 15% decrease in managing director roles. Despite the cost-cutting measures, the bank distributed bonuses amounting to £2.9 billion to eligible employees in 2025, a 10% increase from the previous year.
In 2025, Mr. Elhedery received a total compensation package of £6.6 million, including salary, benefits, an annual bonus, and a long-term incentive award. The bank’s pay committee plans to grant him a long-term incentive award worth 600% of his salary, equivalent to £9 million, for 2026-2028, subject to the bank’s performance over the next three years.
While HSBC’s pre-tax profit for 2025 decreased by approximately 7% year-on-year to £22.1 billion, this decline was influenced by losses related to its investment in the Chinese Bank of Communications and restructuring expenses from its simplification program.