HSBC is preparing significant job cuts in its UK wealth management business as part of its strategy to embed artificial intelligence across operations. According to a Financial Times report, the bank plans to cut roughly half of the management and specialist roles in the division, with reductions among financial advisers potentially reaching 70%. The move, first reported by the Financial Times, could see the bank halve the amount of management and specialist roles it has and cut as much as 70% of its financial advisers as part of the cuts. HSBC does not disclose exact staff numbers for its UK wealth unit, but it is estimated to employ up to 35,000 people across the UK, with the bank's UK business managing £134bn of wealth balances which are roughly split equally across its private banking and premier banking businesses. As reported by Financial Times sources, the retrenchment is being characterised as 'deep, wide and brutal', with practically entire groups expected to be dismissed.
The job cuts are part of HSBC's broader strategy to embrace artificial intelligence technology. As reported by Reuters, CEO Georges Elhedery has positioned AI as a core component of HSBC's future operating model since assuming the top role in September 2024. During HSBC's investor day event in May, Elhedery told employees to embrace AI-driven transformation and acknowledged that generative AI would eliminate certain jobs while creating new opportunities elsewhere. Since assuming the top role in 2024, Elhedery has deployed the technology across multiple functions and business units, with the latest developments representing a significant acceleration of this AI integration strategy. The bank's Group CEO has also committed to lowering overall headcount by removing managerial tiers and shedding redundant senior positions as part of this transformation.
HSBC is not alone in its AI investment strategy, as banks worldwide have been stepping up their artificial intelligence investments. According to the Financial Times report, this trend is already reshaping workforces across the financial services industry. Banks are increasingly using AI to support customer service, wealth management, risk assessment, compliance and operational processes, with organisations reviewing role structures and future skills requirements as adoption expands. For employers and HR leaders, the developments offer another indication of how AI is moving beyond experimentation and becoming a key driver of organisational redesign across global banking institutions.
The current restructuring represents a significant shift from HSBC's aggressive expansion strategy just two years ago. As reported by Financial Times, the bank had recruited aggressively to expand its UK private banking and wealth footprint, targeting £100bn ($132bn) in managed assets by 2030, compared with over £62bn recorded at the close of last year. The changes follow the exit of José Carvalho, who led UK wealth and personal banking, and mark a departure from the bank's previous growth-focused approach. The organisation has entered a 'consultation period' regarding the proposed restructuring, with departures anticipated by the end of the current month as HSBC accelerates its AI adoption strategy across its UK wealth management division.
