HSBC is reportedly planning sweeping job cuts across its UK wealth management operation as it increases its use of artificial intelligence.
The banking giant could cut around half of management and specialist roles in the division, while the number of financial advisers could be reduced by about 70%, according to the Financial Times.
HSBC is currently consulting staff over the proposed changes, with affected employees expected to leave at the end of October. The bank did not disclose how many people work specifically in its UK wealth business, although it is thought to have hundreds of relationship managers around the country.
The restructuring comes as group chief executive Georges Elhedery (pictured) makes greater use of AI and digital technology a central part of his efforts to simplify the bank and improve efficiency.
At an investor event in May, Elhedery warned that “generative AI will destroy certain jobs” and said employees would need to embrace the changes brought about by the technology.
HSBC has already introduced AI tools for its relationship managers. Elhedery said in July that the technology was being used to help staff serve customers more quickly, including providing market insights and personalised investment strategies.
The reported cuts would represent a significant change in direction for HSBC, which launched a recruitment drive two years ago to expand its UK wealth and private banking operations.
“HSBC UK is a long-established, leading UK wealth manager and premium banking provider,” the bank said in a statement reported by the FT.
“We’re continuing to evolve to deliver more digitally enabled products and journeys to support our best-in-class wealth service and meet the changing needs of our customers.”
HSBC’s UK wealth operation has around £134 billion of invested assets and wealth deposits across its premier and private banking businesses.
Elhedery has been pursuing a wider cost-cutting programme since becoming chief executive in 2024, with the bank already stripping out $1.5bn (£1.13bn) of costs ahead of schedule.