Banking giant HSBC Is Plotting To Replace 20,000 Employees With AI To Major Overhaul To Avoid A Banking Apocalypse

Fears of an AI-driven jobs cull on Wall Street are intensifying. Why? Word has gotten out that HSBC is plotting to replace 20,000 workers. 

HSBC is plotting to replace around 10% of its global workforce. This is part of a major push to replace human roles with artificial intelligence.

There are now growing fears rivals could follow suit. Lenders such as Bank of America, JPMorgan and Citigroup all investing heavily in AI. Other banks are under pressure to slash costs in the same way.

HSBC CFO Pam Kaur delivered the chilling warning at a Morgan Stanley conference. 

That aligns with HSBC boss Georges Elhedery’s push to use AI to shrink their middle and back offices. 

HSBC Is Plotting To Replace 20,000 Employees

Stephanie Alston, the CEO of BGG Enterprises told the Daily Mail that this is not an isolated move: 

“Banks have been quietly investing in automation for years, but what is changing now is the scale and speed. AI is moving from back-office efficiency into decision-making, risk analysis, customer service and even compliance functions.”

Meanwhile, a wave of layoffs for AI has already begun in the US. 

Jack Dorsey kicked off the wave in February, axing 4,000 workers from his new venture Block. Dorsey said he would rather make deep cuts now than carry out staggered layoffs as AI reshapes the business.

In addition, tech entrepreneur Mike Cannon-Brookes also followed by slashing 1,600 jobs in an AI-driven shake-up.

Reports also emerged suggesting Meta could also cut as much as 20% of its workforce. The company is pouring billions into artificial intelligence.

HSBC executives say the cuts would be rolled out over the next three to five years.

Read More About Layoffs In The Banking Industry On MFI-Miami.com.

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