LONDON: Standard Chartered plans to eliminate more than 7,000 jobs over the next four years, turning to artificial intelligence to replace what its chief executive called “lower-value human capital.”
The London-based lender said Tuesday it would cut 15% of its corporate function roles by 2030. That reduction would amount to more than 7,000 positions out of roughly 52,000 staff in those roles, according to a Reuters calculation. The bank employs nearly 82,000 people globally.
“It’s not cost-cutting,” CEO Bill Winters told reporters. “It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in.”
Winters said automation and AI adoption would drive the reductions, though some affected employees would have the chance to retrain. “The people that want to reskill, that want to carry on, we’re giving every opportunity to reposition,” he said.
The job cuts were announced alongside higher shareholder return targets as Standard Chartered nears the end of a decade-long effort to remake itself from a potential takeover target into a steadily profitable lender. Its London-listed shares have risen 65% over the past 12 months but fell 0.5% in early trading Tuesday, with analysts saying the new targets fell on the conservative end of expectations.
Standard Chartered said it would deliver a return on tangible equity above 15% in 2028, up more than three percentage points from 2025, and build to about 18% by 2030. The bank is focusing on higher-margin businesses, including affluent retail clients and financial institutions within its corporate and investment banking division.
The lender also moved up a goal of attracting $200 billion in net new money to 2028 from a previous target of 2029. In the first quarter, the bank reported record highs for both wealth revenue and new client money.
Standard Chartered, which focuses on Asia-Pacific and Africa, faces geopolitical uncertainty in some of its key markets. Analysts have said Asia-Pacific banks may need to increase loan-loss provisions if the Iran conflict persists, as higher energy costs and weaker growth strain borrowers. The bank set aside $190 million in precautionary provisions tied to the Middle East conflict in the first quarter.
Other global lenders are pursuing similar strategies. Japanese bank Mizuho in March announced plans for up to 5,000 job cuts over a decade, and financial firms worldwide are racing to integrate advanced AI models while managing rising cyber threats.
