Fears of an AI-driven jobs cull on Wall Street are intensifying after banking giant HSBC revealed it is weighing sweeping layoffs that could hit up to 20,000 workers. 

The London-based lender is considering cutting around 10 percent of its global workforce as part of a major push to replace human roles with artificial intelligence, according to reports. 

There are now growing fears rivals could follow suit – with major lenders such as Bank of America, JPMorgan and Citigroup all investing heavily in AI and under pressure to slash costs in the same way.

Chief financial officer Pam Kaur delivered the chilling warning at a Morgan Stanley conference, saying the bank is focused on the ‘benefits we can get through AI’ – whether tackling ‘staff-related inflation‘ or boosting productivity. 

That aligns with HSBC boss Georges Elhedery’s push to use AI to shrink their middle and back offices, with Bloomberg reporting that up to 20,000 jobs could be affected – particularly non-client-facing roles in global service centers. 

Meanwhile, a wave of layoffs for AI has already begun in the US. 

Jack Dorsey kicked off the wave in February, axing 4,000 workers – roughly half of Block’s workforce – saying he would rather make deep cuts now than carry out staggered layoffs as AI reshapes the business.

It was followed by Australian tech entrepreneur Mike Cannon-Brookes slashing more than 1,600 jobs at Atlassian in an AI-driven shake-up.

Fears of an AI-driven jobs cull on Wall Street are intensifying after banking giant HSBC revealed it is weighing sweeping layoffs that could hit up to 20,000 workers

Fears of an AI-driven jobs cull on Wall Street are intensifying after banking giant HSBC revealed it is weighing sweeping layoffs that could hit up to 20,000 workers

That aligns with HSBC boss Georges Elhedery's push to use AI to shrink their middle and back offices

That aligns with HSBC boss Georges Elhedery’s push to use AI to shrink their middle and back offices

The London-based lender is considering cutting around 10 percent of its global workforce as part of a major push to replace human roles with artificial intelligence, according to reports

The London-based lender is considering cutting around 10 percent of its global workforce as part of a major push to replace human roles with artificial intelligence, according to reports

Chief Financial Officer Pam Kaur delivered the chilling warning at a Morgan Stanley conference, saying the bank is focused on the 'benefits we can get through AI'

Chief Financial Officer Pam Kaur delivered the chilling warning at a Morgan Stanley conference, saying the bank is focused on the ‘benefits we can get through AI’

Then this week, reports emerged suggesting Meta could cut as much as 20 percent of its workforce as the company that owns Facebook pours billions into artificial intelligence.

HSBC’s plans are still under discussion, and no final decision has been made. 

But insiders say the cuts could be rolled out over the next three to five years as part of a sweeping cost-cutting drive. 

There are fears that other big US banks could follow HBSC’s example and begin their own AI cull. 

Stephanie Alston, the CEO of BGG Enterprises, a recruitment agency, told the Daily Mail this wasn’t an ‘isolated move’.

‘Banks have been quietly investing in automation for years, but what is changing now is the scale and speed,’ Alston said. ‘AI is moving from back-office efficiency into decision-making, risk analysis, customer service and even compliance functions.’

She said one of the biggest concerns is the mix of job displacement and the fact that AI regulation still hasn’t caught up. 

When companies move faster than the legal and ethical rules meant to guide them, it can put both workers and consumers at risk.

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Stephanie Alston, the CEO of BGG Enterprises, told the Daily Mail that banks are now accelerating in scale and speed with AI and that it will definitely reshape the workforce

Stephanie Alston, the CEO of BGG Enterprises, told the Daily Mail that banks are now accelerating in scale and speed with AI and that it will definitely reshape the workforce

Since banking is already heavily regulated, but AI governance is still pretty new, Alston pointed out that there aren’t always clear violations under current laws. 

That gray area can end up creating a lot of legal risk.

‘If this trend accelerates, we are likely to see US banks follow a similar path, especially under continued pressure to cut costs and improve margins. 

‘The key question is not whether AI will reshape the workforce. It already is,’ Alston said. 

Job cuts in the US have surged to their highest level since the Great Recession, according to a report from global outplacement firm Challenger, Gray & Christmas.

Employers announced 108,435 layoffs in January – a 118 percent jump from the 49,795 cuts recorded in the same month last year, and a 205 percent spike from December’s 35,553.

Analysts said the total marks the highest January figure since 2009, when 241,749 job cuts were announced.