HSBC plans job cuts across UK wealth business in AI push, FT reports

(Corrects text to remove dated reference to bank not responding immediately to Reuters request for comment)

Oct 7 (Reuters) - HSBC is planning sweeping job cuts across its UK wealth management business, including a sharp reduction in financial advisers and specialist staff, as part of a broader push to integrate AI, the Financial Times reported on Wednesday.

The bank plans to cut about half of management and specialist roles in the business, while reductions among financial advisers could reach around 70%, the report said, citing people familiar with the plans.

HSBC does not disclose the number of employees in its UK wealth business, though it is thought to have hundreds of relationship managers across the country, according to the FT.

"HSBC UK is a long-established, leading UK wealth manager and premium banking provider," the bank said in a statement to Reuters. "We're continuing to evolve to deliver more digitally enabled products and journeys to support our best-in-class wealth service and meet the changing needs of our customers." 

The bank is currently in a consultation period on the proposed changes, the report said, adding that affected employees are expected to leave by the end of the month.

In May, Chief Executive Georges Elhedery said at an HSBC investor day event that staff needed to embrace AI-driven change rather than resist it and that "generative AI will destroy certain jobs".

Elhedery has made AI a central part of his strategy since taking over in 2024, deploying the technology across multiple functions and businesses to simplify operations and personalize content for customers. 

Banks across the globe have increased investments in AI, reshaping workforces and leading to changes in job roles. This has deepened concerns among economists that AI will upend established industries, with job losses already emerging in sectors most exposed to automation.

(Reporting by Rajveer Singh Pardesi and Ruchika Khanna in Bengaluru; Editing by Sonia Cheema)