HSBC CEO Georges Elhedery told staff not to fight AI as it could make them "more productive versions of themselves".
Elhedery said he wanted to make sure employees were "not fighting us, not disenfranchised, not anxious, overwhelmed, and resisting the change." "We all know generative AI will destroy certain jobs and will create new jobs," he added.
The message came after another banking giant, Standard Chartered, said it would cut thousands of jobs by replacing what it called "lower-value human capital" with technology.
It became the first banking giant to formally attach a specific headcount-reduction number and a deadline to AI deployment. It will cut 15% of its corporate function by the end of the decade.
"We don't have job losses, but we do have job role reductions in favor of the machines, and that will accelerate as we go forward into AI," CEO Bill Winters said. He went on to say that staff who wish to remain will be given opportunities to reskill and reposition within the bank.
AI-related layoffs continue dominating headlines and statistics. It was the leading reason companies gave for layoffs in April for the second straight month.
Outplacement firm Challenger, Gray & Christmas reported that 21,490 layoffs in April were tied to AI-related restructuring, accounting for 26% of all announced cuts during the month. The total number of layoffs rose 38% from March, while the technology sector recorded the largest share of reductions with 33,361 job cuts, according to the firm.
Several major technology companies have been shifting spending away from hiring and toward artificial intelligence projects, data centers and automation tools. Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, said companies are increasingly redirecting payroll budgets toward AI investments rather than expanding headcount.
"Regardless of whether individual jobs are being replaced by AI, the money for those roles is," Challenger said in a statement released alongside the report.
Separate layoff trackers from The Wall Street Journal showed workforce reductions continuing across finance, technology, media and retail sectors through early May as companies grapple with slower growth and rising operational costs.
Data published by Benzinga also showed AI-linked layoffs affecting hiring plans across multiple industries, with employers slowing recruitment even in areas previously considered resilient.
Market analysts have noted that while some companies have benefited from investor enthusiasm surrounding AI initiatives, workforce reductions have become a recurring feature of corporate restructuring efforts during 2026. Sneaker company Allbirds drew attention earlier this year after its shares surged following plans to pivot toward AI-related operations and away from parts of its footwear business.
