- HSBC CEO Georges Elhedery urged staff not to resist AI adoption amid job shifts
- AI will both eliminate some jobs and create new roles, said HSBC's chief
- Standard Chartered plans to cut 8,000 jobs while increasing AI use
HSBC Chief Executive Georges Elhedery urged employees not to resist the growing adoption of artificial intelligence, acknowledging that the technology will both eliminate and create jobs as global banks accelerate workforce restructuring.
According to Reuters, Elhedery said employees should avoid becoming anxious, overwhelmed, and resisting the change, adding that AI could help workers become more productive versions of themselves. “We all know generative AI will destroy certain jobs and will create new jobs,” he said.
The remarks came as rival lender Standard Chartered sought to reassure employees after announcing plans to cut nearly 8,000 roles while increasing its use of AI and automation, Reuters reported.
ALSO READ: Layoffs Loading: Standard Chartered To Double Down On AI, Slash Over 7,000 Jobs
Standard Chartered CEO Bill Winters said the bank aims to reduce 15% of corporate function roles by 2030, describing some positions as lower-value human capital. The comments sparked concern among staff, prompting Winters to later issue a memo stating that employees remained valued and any restructuring would be handled with thought and care.
HSBC currently employs more than 211,000 people globally, while Standard Chartered has around 83,000 employees.
According to a recent analysis by Morgan Stanley, companies across banking, technology and professional services have reduced headcount by roughly 5% over the past year as AI adoption gathers pace.
The report said offshore workers in countries such as India and Poland, along with younger employees and recent hires, have been most affected. Banks have so far been cautious about publicly discussing the extent of AI-led job losses, though that is beginning to change.
ALSO READ: Meta Layoffs Begin: Five Ways To Secure Yourself From Job Cuts
Reuters reported that Goldman Sachs informed employees last year about potential job cuts and slower hiring linked to AI adoption, according to an internal memo. Meanwhile, Wells Fargo CEO Charlie Scharf said in December that while the bank had not reduced staffing because of AI, it was getting a lot more done using the technology.
The CEO of Norway's $2.2 trillion sovereign wealth fund warned in April that aggressive AI-led cost-cutting could trigger backlash if employees fear they are training systems that may eventually replace them.
A research from the King's College London found that six in 10 people in Britain believe AI will eliminate more jobs than it creates, while one in five think the technology could contribute to civil unrest.
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