StanChart to cut more than 7,000 jobs as bank steps up AI adoption

Standard Chartered announced plans to eliminate more than 7,000 corporate function roles by 2030, representing a 15% reduction from its current workforce of over 52,000 in those roles. The job cuts, driven by AI and automation, aim to streamline operations and boost profitability amid rising competition. CEO Bill Winters stated the move replaces lower-value human roles with financial investments in technology, while affected back-office centers include locations in Chennai, Bangalore, Kuala Lumpur, and Warsaw. The bank’s strategy update also includes a target of delivering over 15% return on tangible equity by 2028, rising to 18% by 2030, surpassing analyst expectations. Standard Chartered accelerated its goal of attracting $200 billion in new client wealth to 2028, citing strong first-quarter growth in affluent retail and institutional banking. Geopolitical risks, including the Iran conflict, prompted a $190 million provision in Q1, though Winters called the bank ‘extremely resilient.’ The job reductions align with broader industry trends as firms deploy AI to cut costs and enhance efficiency. Standard Chartered’s Hong Kong-listed shares rose 2.5% following the announcement, while the bank named Manus Costello, its investor relations head, as permanent CFO. Winters, in his 11th year as CEO, reassured markets he will oversee the strategy’s execution, including succession planning. The bank remains focused on high-margin businesses, including affluent clients and corporate banking, to sustain growth despite challenges in key markets like Asia-Pacific. Analysts warn regional banks may need higher loan-loss provisions if the Middle East conflict persists, but Standard Chartered’s early AI integration positions it to navigate uncertainties.