Standard Chartered to cut 7,000 jobs by 2030 as it ramps up AI focus: Report
New Delhi, May 19
Standard Chartered plans to cut 7,000 jobs as the lender ramps up efforts to scale AI adoption to make its operations slimmer and more streamlined, Reuters reported.
The bank said it would slash 15% of the corporate functions by 2030. According to a Reuters estimate, the move will translate into 7,000 positions becoming redundant out of the more than 52,000 such roles in the organisation.
The London-headquartered lender aims for more than 15% return on tangible equity in 2028, eventually leading to about 18% in 2030, according to a Wall Street Journal report.
"We are investing in the capabilities that will compound our competitive advantages and drive sustainable growth and higher quality returns over time, with clear targets in place," the WSJ report quoted the bank's chief executive Bill Winters as saying.
The move will hit bank's back-office centres, including those in Chennai, Bangalore, Kuala Lumpur and Warsaw, according to Reuters. The lender also aims for an increase of around 20% in the income per employee by 2028, which will be supported by the planned reduction in corporate functions.
StanChart joins a growing club of global corporate biggies that are deploying AI tools to make their operations more efficient. The bank also laid to rest speculations around succession planning, saying that Winters will continue to be at the helm to see through the planned changes.
The bank's new targets will see a renewed focus on key businesses like retail clients and its corporate and investment banking divisions. The bank's new targets come at a moment of global uncertainty with the West Asia conflict raging and the continued closure of the Strait of Hormuz fuelling oil prices and casting a pall of gloom on new investments by major corporates.
Winters set aside concerns regarding the Iran war and its impact on the bank's business, emphasising that the bank is 'extremely resilient'.
The bank had set aside $190 million in precautionary provisions linked to the West Asia conflict in the first quarter.
On Monday, the bank named Manus Costello, investor relations head and equity research veteran, as its permanent CFO. He will succeed Diego De Giorgi, who resigned in February after spending nearly three years with the bank.
— ANI
Reader Comments
I work in BFSI, and this is honestly not surprising. The writing has been on the wall for a while. The cost savings from AI are massive, but the human cost is real. Standard Chartered is just following the global trend—HSBC, JPMorgan, everyone is doing this. The silver lining is that maybe it will push us to innovate and create new job roles. Desh ka bhavishya tech mein hi hai! 🇮🇳
It's all about return on equity and shareholder value. But what about the employees who built that value? 15% of corporate functions cut—that's a lot of families impacted. And the CEO says the bank is 'extremely resilient' while people lose jobs. There is a lack of empathy in these announcements. We need more worker-friendly policies in India to cushion such blows.
Guys, this is not just about job losses. It's also about how global banks are shifting their strategies. StanChart is doubling down on retail and corporate banking. With the West Asia crisis and oil prices, they are being cautious. The real story here is how quickly AI is being adopted—koi bach ke nahi bachega eventually. We all need to upskill.
This is a global phenomenon. As someone in tech, I think it's inevitable. But the key is how we manage the transition. Most of these jobs are in back-offices in developing countries like India and Malaysia. The government needs to step in with better social safety nets and retraining programs. Otherwise, it's just going to widen the inequality gap.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.