Source: Sharecast
According to the Financial Times, which cited people familiar with the plans, the bank will cut roles across its UK wealth business. About half of the business’s management and specialist roles are expected to go, while the reduction in the ranks of financial advisers will be closer to 70%.
One source described the cuts as "deep, wide and brutal", adding that almost entire teams would be made redundant. HSBC does not break down how many people it employs in its UK wealth business but it is thought to have hundreds of relationship managers based across the country, according to the FT.
It was understood the bank is in a "consultation period" regarding the proposed changes, with impacted staff expected to leave at the end of the month.
"HSBC UK is a long-established, leading UK wealth manager and premium banking provider," the bank said. "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."
At 0837 BST, the shares were down 1.8% at 1,446p.
Angeline Ong, senior technical analyst at IG, said: "HSBC's cuts tell a story of AI moving up the value chain into client-facing roles that banks have historically protected. It marks a u-turn from HSBC's 2023 hiring drive, which aimed to add 100+ wealth managers towards a target of £100bn UK wealth assets by 2030.
"The next key date will be HSBC's Q3 2026 earnings release on Oct 27, where commentary on UK wealth AUM growth and cost-income ratio will indicate whether the cuts show up as credible efficiency or a client-retention problem."