Standard Chartered to cut over 7,000 jobs as AI expands

 London-headquartered Standard Chartered plans to cut more than 7,000 jobs over the next four years as the lender increases the use of artificial intelligence while pursuing higher profitability and operational efficiency.

The bank said on Tuesday it would reduce 15% of its corporate function roles by 2030.

The lender’s total global workforce stands at nearly 82,000.

The announcement makes Standard Chartered one of the first major global banks to officially outline large-scale job cuts tied to AI adoption.

The lender is seeking to streamline operations and remain competitive as financial institutions globally race to integrate advanced AI models into their systems.

AI adoption to drive operational changes

Chief Executive Officer Bill Winters told reporters that the workforce reduction would largely be driven by automation and artificial intelligence, while some employees would be reskilled.

According to Winters, the most affected roles will likely be concentrated in the bank’s back-office centres, including operations in Chennai, Bangalore, Kuala Lumpur, and Warsaw.

The restructuring effort comes as Standard Chartered nears the completion of a decade-long transformation aimed at strengthening profitability and moving away from its earlier image as a potential takeover target.

The bank’s Hong Kong-listed shares rose 2.5% in morning trade, outperforming the benchmark Hang Seng Index, which remained largely flat.

Bank raises profitability ambitions.

Alongside the restructuring plans, Standard Chartered also announced stronger shareholder return targets as part of its latest strategy update.

The lender said it aims to achieve a return on tangible equity of more than 15% in 2028, over three percentage points higher than its 2025 target.

The bank further expects ROTE to rise to around 18% by 2030, exceeding some analyst estimates.

Standard Chartered said its strategy would continue to focus on higher-margin businesses, particularly affluent retail banking clients and financial institutions within its corporate and investment banking division.

The lender also accelerated its target of attracting $200 billion in net new money to 2028, compared with its earlier goal of 2029.

During the first quarter, the bank reported its highest-ever wealth revenue and strongest inflows of new client money.

Geopolitical risks remain in focus

The strategic update comes as the bank continues to navigate geopolitical uncertainty across several of its core markets in Asia-Pacific and Africa.

Analysts have warned that Asia-Pacific lenders may need to further increase loan-loss provisions if the Iran conflict continues, as higher energy prices and slower economic growth could pressure borrowers.

Standard Chartered disclosed that it had set aside $190 million in precautionary provisions related to the Middle East conflict during the first quarter.

“We are extremely resilient,” Winters said when asked about geopolitical and market risks and the bank’s ability to achieve its financial targets.

The update also addressed speculation surrounding succession planning after Winters’ 11-year leadership stint.

The bank indicated that the CEO would remain in his role for the next few years to oversee the execution of the latest strategy.

Separately, the lender on Monday appointed Manus Costello as its permanent Chief Financial Officer.

Costello succeeds Diego De Giorgi, who resigned in February after nearly three years with the bank.