HSBC is set to implement a significant workforce reduction, targeting approximately 10% of its total employees over the next few years, according to a report from Reuters. The global banking giant, which employed 208,720 full-time staff as of its year-end report in December 2025, is expected to cut around 20,000 positions globally, as reported by Bloomberg, citing unnamed sources familiar with the matter. The job cuts are anticipated to primarily impact back-end roles and non-client-facing positions.
The evaluation process is still in its early stages, and no final decisions have been made regarding the layoffs, sources indicated. An official spokesperson for HSBC has yet to comment on the matter. This planned reduction comes amid an increasing reliance on artificial intelligence (AI), which has allowed companies to streamline operations by reducing staff in departments most susceptible to automation.
HSBC’s downsizing is part of a broader medium-term strategy that spans three to five years. This may also involve not merely layoffs but potential business exits or sales to realign the bank’s operations, as it aims to simplify its structure and eliminate cost inefficiencies within its portfolio.
The announcement of job cuts follows a research publication by AI expert Andrej Karpathy, which gained viral attention and highlighted the potential for AI to disrupt numerous white-collar jobs globally. Karpathy’s research assessed 342 different professions, revealing that various roles, including those of software developers, financial analysts, writers, editors, and graphic designers, could be significantly affected by the growing capabilities of AI technology.
HSBC is not alone in this trend of workforce reductions driven by advancements in AI. In 2026, other major firms have also announced significant layoffs. For example, Atlassian Corp. revealed plans to cut 1,600 jobs, representing 10% of its global workforce, as it shifts towards greater reliance on AI technologies. This restructuring included the replacement of its chief technology officer and a renewed focus on investments in AI, with layoffs expected to hit employees across North America, Australia, India, Japan, the Philippines, Europe, the Middle East, and Africa.
Similarly, Meta, led by Mark Zuckerberg, is preparing to lay off 20% of its workforce, which translates to approximately 16,000 workers. The company aims to offset the costs associated with its investments in AI infrastructure by enhancing operational efficiency through AI-assisted processes. However, Reuters noted that no official confirmation regarding the timeline or specific numbers has been provided.
Meanwhile, Panasonic Holdings (HD) announced an additional 2,000 layoffs on top of the previously disclosed 10,000 job cuts set for May 2025. This decision stems from voluntary retirement programs in Japan and elsewhere, raising the restructuring costs to approximately 180 billion yen, up from an earlier estimate of 150 billion yen.
In the retail sector, Walgreens is reportedly preparing to lay off approximately 159 employees in the Houston area, starting June 1, as indicated by a Worker Adjustment and Retraining Notification (WARN) filed with the state of Texas. After being acquired by private equity firm Sycamore Partners, the pharmacy and retail chain is also planning additional store closures in 2026. In its home state of Illinois, Walgreens is expected to downsize by 469 employees, contributing to total layoffs exceeding 600 across the two states.
The growing trend of layoffs among major companies illustrates the broader impact of AI advancements on the labor market, raising concerns about job security in various sectors. As organizations adapt to evolving technologies, the future of many roles remains uncertain, highlighting the urgent need for workers to reskill and adapt in a rapidly changing employment landscape.
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