HSBC Holdings (LSE:HSBA) is planning job reductions within its UK wealth management business as the bank increases its use of artificial intelligence and digitally enabled services, according to a Financial Times report on Wednesday.
Citing people familiar with the plans, the FT reported that approximately half of management and specialist positions could be eliminated, while the number of financial advisers could be reduced by around 70%.
The proposed changes are currently subject to a consultation process, according to the report. Employees affected by the restructuring are expected to leave at the end of October.
The FT reported that one person familiar with the proposals described the planned reductions as “deep, wide and brutal”.
HSBC reportedly said it continues to develop its UK wealth business with more digitally enabled products and services in response to changing customer requirements.
HSBC Expands Use of AI
The reported restructuring comes as Chief Executive Georges Elhedery incorporates artificial intelligence into the bank’s broader strategy to simplify its operations.
The proposed reductions would also follow a hiring programme launched around two years ago as HSBC sought to expand its UK wealth and private banking operations.
HSBC has not yet completed the consultation process, and the final number of positions affected by the proposed changes was not specified in the source material.
About HSBC
HSBC Holdings is a London-listed international banking group providing services including retail and commercial banking, wealth management and private banking.
Its UK wealth operations provide financial products and advisory services to customers, alongside the bank’s expanding range of digitally delivered services.
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