HSBC is restructuring its UK wealth division by cutting approximately 50% of management and specialist roles. Additionally, the bank plans to eliminate 70% of its financial adviser positions as it shifts toward AI-enabled services for affluent clients.
Consultations with affected staff are currently underway, with departures expected by the end of October 2026. This shift replaces a previous hiring initiative aimed at growing UK wealth assets to £100 billion by 2030.
The strategy is led by CEO Georges Elhedery, who took office in September 2024 and identified AI as a core pillar for operational efficiency. HSBC has already achieved annual savings of $1.5 billion through previous simplification efforts.
Market reaction to the announcement was negative, with HSBC shares falling between 1.9% and 2.2% in London. Globally, AI-driven efficiencies could potentially impact 20,000 jobs, representing roughly 10% of the bank's total workforce.
The move follows similar trends in the sector, as Standard Chartered recently announced plans to cut approximately 7,800 jobs to gain productivity from AI. Regulators are expected to monitor how automated systems handle financial advice obligations.
