Weekly Global News Wrap: Barclays to cut 5,000 jobs; Wells Fargo appoints head of AI; HSBC exec warns about data centre investments

HSBC’s Elhedery said AI is “a major enabler to re-engineer and reimagine all our businesses, all our activities”,

From Reuters:

British lender Barclays plans to cut 5,000 jobs, or about 5% of its global workforce, as part of efforts to improve efficiency through artificial intelligence (AI).

The bank, which employs about 93,000 people worldwide, has already eliminated 1,000 roles in the first half of 2026. The remaining 4,000 cuts are expected to be completed by the end of the fourth quarter, according to reports.

About 60% of the reductions will affect support functions, including software development, as AI automates coding and operational processes.

The measures are expected to generate more than $1.5b in savings by 2027. However, Barclays anticipates restructuring costs of about £600 million this year.

From Bloomberg:

Wells Fargo has appointed Saul Van Beurden as its full-time head of artificial intelligence (AI), shifting him from his role as co-chief executive of Consumer Banking and Lending as the US bank steps up its AI efforts.

Van Beurden will focus on expanding AI adoption across the company, working with technology head Bridget Engle and external AI firms. He will report directly to chief executive Charlie Scharf and remain on the bank’s Operating Committee.

Kleber Santos will take over as the sole chief executive of Consumer Banking and Lending, overseeing consumer deposits, credit cards, business banking and auto lending.

Both Van Beurden and Santos will continue to report to Scharf as the bank separates its AI leadership from its consumer banking operations.

From CNBC:

HSBC chief executive Georges Elhedery has urged investors to be selective when investing in data centres, warning that not all projects offer the same quality of contracts or pricing, despite artificial intelligence’s growth potential.

Speaking to CNBC, Elhedery described AI as “a major enabler to re-engineer and reimagine all our businesses, all our activities”, adding that the technology could improve employee productivity and help transform the bank’s operations.

However, he cautioned against investing indiscriminately in infrastructure supporting AI, stressing the need to assess the quality of tenancy agreements and contract pricing.

“One has to be selective,” Elhedery said. “Not all of them are of that level of virtuosity that you can support strongly. Some of them may be more challenging.”

HSBC, headquartered in London, both finances and operates data centres. The bank said in its 2025 annual report that it aims to become “the leading bank for fast-growing transition ecosystems”, including businesses in the data centre and AI sectors.

HSBC was ranked the world’s seventh-largest bank and Europe’s largest lender by S&P Global last year, with assets approaching $3t.