AI Job Displacement Wave Really Here? After META, HSBC Reportedly Considers Cutting 20,000 Positions

Caixin News, March 19 — (Editor Liu Rui) According to sources, HSBC Holdings is considering large-scale layoffs in the coming years. HSBC CEO Georges Elhedery is boldly betting that as artificial intelligence technology matures, positions in the company’s middle and back-office departments will be significantly reduced.

If the rumors are true, this could be one of the early signs of AI potentially reshaping the workforce on Wall Street, marking a further move of traditional banks toward a digital and efficiency-driven development model.

HSBC Plans to Cut 10% of Its Workforce

Sources say this adjustment could affect about 20,000 jobs at HSBC, accounting for 10% of its total staff. Among these, middle and back-office roles at global service centers (positions not directly facing customers) are most likely to be impacted by layoffs, though the assessment is still in early stages.

This report comes at a time when HSBC is undergoing a broad restructuring — the bank is reforming its operations to cut costs, sell non-core assets, and focus on its core banking business in Asia.

Sources reveal that the bank’s layoff plan is part of its mid-term strategy for the next 3 to 5 years. It is also rumored that discussions about layoffs within HSBC had already begun before last month, with some layoffs possibly achieved through the sale or exit of certain businesses.

Is AI Replacing Human Workers Becoming a Reality?

As this news broke on Thursday, Wall Street was also actively discussing the possibility of AI replacing human employees — especially as AI agents are now capable of autonomously performing certain tasks.

This week, there were rumors that Meta Platforms plans to lay off 20% or more of its staff to offset massive spending on AI and to bet on AI technology to boost productivity. If true, this would be the largest layoff since the company’s “Efficiency Year” restructuring from late 2022 to early 2023.

Last month, fintech company Block, founded by former Twitter CEO Jack Dorsey, announced it would cut nearly half of its staff, citing AI as making an increasing number of jobs automatable.

By 2025, statistics show that over 50,000 layoffs worldwide are attributed to AI technology, though analysts have questioned these figures. Some believe that certain companies may be using “AI” as an excuse to hide other reasons for layoffs, such as cooling business demand or poor operational management, especially after the over-hiring during the post-COVID pandemic period.

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