Standard Chartered to cut 7,000 jobs as AI reshapes operations

LONDON: Standard Chartered will eliminate more than 7,000 jobs over the next four years, citing artificial intelligence as a key driver in its push to replace lower-value human capital with technology, the lender said Tuesday.

The London-based bank aims to cut 15% of its corporate function roles by 2030, a reduction that according to a Reuters calculation would amount to more than 7,000 positions out of roughly 52,000 staff in such roles. Standard Chartered has a total global workforce of nearly 82,000.

“It’s not cost-cutting. It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in,” CEO Bill Winters told reporters.

Winters said the reductions will be driven by automation and AI adoption, with some employees retraining for new roles. “So, the people that want to reskill, that want to carry on, we’re giving every opportunity to reposition,” he said.

The job cuts and higher shareholder return targets announced in a strategy update come as Standard Chartered nears the end of a decade-long effort to transform from a potential takeover target into a steadily profitable lender.

Its London-listed shares, which have risen 65% over the past 12 months, fell 0.5% in early trading as analysts said the new targets were at the conservative end of expectations.

Standard Chartered said it would deliver a return on tangible equity above 15% in 2028, more than three percentage points higher than in 2025, building to about 18% in 2030.

The bank is sharpening its focus on higher-margin businesses, including affluent retail clients and financial institutions within its corporate and investment banking division.

The lender also pulled forward 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 the Asia-Pacific and Africa, faces geopolitical uncertainty in some key markets. Analysts have said Asia-Pacific banks may need to raise loan-loss provisions further if the Iran conflict drags on, as higher energy costs and weaker growth strain borrowers.

The bank set aside $190 million in precautionary provisions linked to the Middle East conflict in the first quarter.