HSBC is preparing substantial job cuts across its UK wealth management business as the bank increases its use of artificial intelligence in services for wealthy customers. The proposed restructuring could remove about half of management and specialist positions, while the number of financial advisers could be reduced by around 70%.
The changes are being discussed with employees during a consultation period, according to the Financial Times, which cited people familiar with the plans. Staff affected by the restructuring are expected to leave the bank at the end of October, while some teams could lose most of their existing positions.
Wealth Management Teams Face Broad Reductions
HSBC does not disclose a separate headcount for its UK wealth management operation, although the business is understood to employ hundreds of relationship managers across the country. According to the Financial Times, the planned reductions extend across management, specialist and advisory positions rather than being limited to one part of the division.
One person familiar with the proposals described the cuts as “deep, wide and brutal”, saying that almost entire teams could be made redundant. The scale of the planned reduction among financial advisers, at close to 70%, would be larger than the expected cut of roughly half of management and specialist roles.
The restructuring comes after HSBC previously sought to expand its UK wealth business. Angeline Ong, senior technical analyst at IG, said the changes represented a reversal from the bank’s 2023 recruitment drive, when it aimed to add more than 100 wealth managers as part of its ambition to reach £100 billion in UK wealth assets by 2030. HSBC shares were down 1.8% at 1,446p at 08:37 BST, according to Halifax.
HSBC said its UK operation remained a long-established wealth manager and premium banking provider. The bank said it was continuing to change the business by offering more digitally enabled products and customer journeys, while responding to changing customer needs.
AI becomes a larger part of HSBC’s wealth strategy
The proposed cuts come as HSBC expands its use of artificial intelligence across the group. Chief executive Georges Elhedery has supported the use of AI tools as part of efforts to simplify processes and improve efficiency.
In a blog post published in July, Elhedery said HSBC had been providing relationship managers with AI tools designed to help them serve customers more quickly. These included technology capable of delivering market insights and personalised investment strategies.
The bank has also been pursuing wider cost reductions under Elhedery’s leadership. According to the Independent, HSBC has already removed around $1.5 billion (£1.13 billion) of costs from the business ahead of schedule, including savings achieved by cutting duplicate senior management positions.
Ong said the changes showed AI moving further into customer-facing positions that banks had traditionally protected. She also pointed to HSBC’s third-quarter results, due on 27 October, as the next point at which investors could receive further information about UK wealth assets under management and the bank’s cost-income ratio.
For now, the proposed changes remain subject to consultation. The reports indicate that affected employees are expected to leave at the end of October, marking a significant reshaping of HSBC’s UK wealth management workforce as the bank increases its reliance on digital tools and AI-assisted services.
