HSBC’s CEO is reportedly contemplating cutting 20,000 jobs within a few years, focusing on middle and back-office roles to leverage AI for cost reduction. Potential staff reductions may also result from business divestitures. These changes could affect approximately 10% of HSBC’s workforce of 210,000 over the next three to five years, although discussions are at a preliminary stage with no final decisions made yet.
These discussions began before recent geopolitical events. Since taking the CEO position in 2024, Georges Elhedery has already overseen the elimination of thousands of roles at the bank. Last year, HSBC disclosed a cost reduction of £890 million after streamlining its senior management team.
Originally aiming for £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. Elhedery attributed a significant portion of the savings to job consolidation, resulting in a 15% decrease in managing director positions. Despite the cost-cutting measures, HSBC distributed bonuses totaling £2.9 billion to eligible employees, a 10% increase from the previous year.
Elhedery received a total compensation of £6.6 million in 2025, including salary, benefits, an annual bonus, and a long-term incentive award of approximately £4.8 million. The bank’s pay committee plans to grant him a long-term incentive award worth up to £9 million for 2026-2028, subject to performance conditions.
HSBC reported a 7% decline in pre-tax profit to £22.1 billion for 2025, citing losses related to its investment in the Chinese Bank of Communications and restructuring expenses from its simplification program.