DNB cuts 400 jobs with AI; HSBC may cut 70% of advisors

DNB, Norway's largest bank, announced on October 6 the elimination of about 400 full-time positions in its Technology & Services unit, with cuts anticipated in the fourth quarter. The bank attributed the decision to AI agents already performing Know Your Customer tasks, customer data control, and code development. A day later, the Financial Times revealed that HSBC has opened consultations for cuts in its wealth management arm in the UK, which could reduce the number of financial advisors by nearly 70% and eliminate half of management and specialist positions, according to sources familiar with the plans.

HSBC only confirmed the process. "We are currently in a consultation period," a spokesperson told AFP. The bank did not confirm the FT's numbers and, in a statement to Reuters, indicated that it continues to evolve to offer more digital products and services, reserving human advisory for clients with more complex financial needs.

Two Cuts, Two Layers

DNB is cutting where the agent is already at work. KYC, data cleansing, and programming are back-office tasks, measurable and repetitive, and the bank mentioned each of them in its announcement. According to CEO Kjerstin Braathen, DNB is adapting the organization "to a new reality" and will conduct the process "in an orderly and responsible manner," in dialogue with employee representatives.

HSBC is cutting something else: the advisory layer that faces the client. The bet is that the average wealth investor will accept digital channels and that the human advisor will survive only at the top of the pyramid. Affected employees are expected to leave the bank by the end of October, according to the report. The result of a back-office cut appears in saved hours; the result of a 70% cut in advisors shows up in net inflows and retention, numbers that only materialize over quarters.

What Weakens the Reading that AI is the Cause

Aggregate numbers do not show a wave of layoffs. The Evident AI Index, published on October 6, indicated that AI enablement teams grew by over 20% among the 50 banks surveyed, while the total workforce remained virtually stable. The hiring of governance and responsible AI professionals increased by 33% over the past year. JPMorgan led the index for the fifth consecutive year; UBS, in sixth place, was the highest-ranked European bank. Twelve banks have already reported realized or projected returns from AI, compared to eight the previous year.

The HSBC case has a competing explanation. In recent years, the bank attempted to expand its wealth franchise in the UK, including plans to hire more advisors, and an analyst cited by Sharecast describes the current cuts as a reversal of that strategy. Part of the adjustment may be a correction of expansion, with AI being used as a label. In March, Bloomberg reported that HSBC was evaluating changes that could affect around 20,000 roles, approximately 10% of the workforce, over three to five years. The bank did not comment, and Reuters noted that the review was in its early stages.

On the other hand, interpreting everything as a pretext also misses the mark. DNB cited concrete tasks, and a bank does not list KYC and programming in a market announcement without expecting investors to demand the gain.

Oslo, London, India, and Singapore

The effect does not remain within the countries of origin. In the March report, Bloomberg indicated that roles without client contact in global service centers were among the most exposed in HSBC's review. The bank maintains such centers in India, with large teams in Hyderabad and Pune, according to its corporate pages. The KYC and data maintenance tasks that DNB already assigns to agents in Norway are the same types of tasks that major European banks have sent to India over the past decade.

In Singapore, the reading came from Wall Street. Kevin Sneader, President of Goldman Sachs for Asia-Pacific excluding Japan, said on October 8, at the Milken Institute Asia Summit, that the bank's new hires are already starting their careers managing AI agents. According to him, mid-level managers face a "generational challenge" because part of the supervisory function is migrating to the front line.

The three cases target different layers: DNB focuses on execution; HSBC on advisory; Goldman on junior analyst learning. Counting cut positions measures the question along the wrong axis. The data that banks still lack is where the managers of 2035 will be formed if the stage in which one learns the trade now involves supervising machines.