Hang Seng Bank layoffs signal AI-driven job cuts ahead: experts

Experts and lawmakers warn that Hang Seng Bank’s mass layoffs only mark the start of a wider trend as artificial intelligence replaces human labor in the banking sector.

This came as the bank has reportedly been cutting staff across departments since March, hitting back-office functions such as strategy and corporate development, information technology, and corporate communications. 

The layoffs range from 10 to 20 percent in most departments, with some slashing as much as 50 percent of staff, including both junior and senior employees.

Employees who survive the cuts must reapply for their positions, competing with external candidates, in a layoff set to finish by June.

Finance sector lawmaker Ronick Chan Chun-ying said automation is rapidly eliminating traditional banking roles. 

“Once documents are input into machines, the entire process becomes automated. I believe jobs from data entry to review, including data analysis tasks, will no longer be needed,” Chan said, adding that lower- and middle-level staff will be most affected.

However, he noted that roles such as fund managers and actuaries are unlikely to be replaced by AI in the near future.

Felix Yip Wai-kwong, associate director of the Centre for Human Resources Strategy and Development at Hong Kong Baptist University, called the cuts a turning point for local businesses: “Hang Seng was traditionally employee-caring, and that local Chinese firms rarely conduct large-scale layoffs.”

Yip cited Hong Kong’s two-percent GDP growth and global competition as drivers to force companies to control labor costs, predicting more firms will restructure, downsize, or outsource workflows.

He warned that with AI reshaping workflows, companies will prioritize core staff while non-core employees must upskill to stay competitive. 

"They must ‘look out for themselves’ by continuously learning new skills," he added.

A Hang Seng Bank spokesperson said the bank is adapting to a fast-changing market and evolving customer needs by optimizing roles, restructuring, and upskilling employees. 

Currently, the bank lists about 85 job openings on recruitment sites, including positions in marketing, data analysis, and customer service.

The move follows a broader restructuring at Hang Seng’s parent company, HSBC, which announced last October a reorganization into four business units—Hong Kong, the UK, corporate and institutional banking, and international wealth and premier banking—under new chief executive officer Georges Elhedery. 

HSBC has already cut around 40 investment banking jobs in Hong Kong earlier this year.

(Ayra Wang)