NEW YORK–Another major bank has announced it is considering widespread job cuts as it relies more on AI.
HSBC said the layoffs it is planning are expected to mostly focus on non-client facing jobs in the bank’s service centers, though the plans are still being worked out, according to Bloomberg News.
The cuts could end up affecting around 20,000 positions, the equivalent of 10% of HSBC’s workforce, one source told Bloomberg. Other sources said the discussions predate the Iran War, and that no final decisions have been made.
The report said some of the roles being considered include positions where HSBC won’t replace staff, and that some of the cuts may come through business sales or exits.
As the CU Daily earlier reported here, Block Inc. said it is cutting more than 4,000 jobs — about 40% of its workforce — citing the growing role of artificial intelligence in how the company operates.
The financial technology firm, known for its payment services Square and Cash App, will reduce its headcount from roughly 10,000 employees to just under 6,000 after the layoffs, according to a letter to shareholders from CEO Jack Dorsey that was posted on social media and shared with investors.
Additional Job Cuts
Other financial firms that have announced job cuts include:
- Morgan Stanley is laying off roughly 2,500 employees, or about 3% of its workforce. The layoffs are occurring across the company’s investment banking operations,
- Citigroup and BlackRock have reportedly reduced their headcounts. Cutbacks Following Capital One Acquisition of Discover.
- One Financial is eliminating additional positions tied to Discover’s Chicago-area headquarters as the bank moves forward with integrating Discover into its operations. According to a notice filed on an Illinois state layoff website, 1,075 employees are scheduled to be laid off in May and another 81 on June 1.
