The London-based bank is one of the first global lenders to announce plans to reduce thousands of staff, citing AI's role in boosting operational efficiency.

On 19/5, Standard Chartered stated it would reduce 15% of its corporate functional unit staff by 2030. According to Reuters' estimates, this plan equates to over 7,000 jobs from a total of more than 52,000 employees in this group.

Currently, the bank employs nearly 82,000 staff globally. Standard Chartered CEO Bill Winters noted that the reductions would be driven by automation and AI application, with some staff also receiving reskilling training.

Winters indicated that the most affected positions are in the bank's back-office operational centers in Chennai, Bangalore, Kuala Lumpur, and Warsaw.

"AI will be a strong enabler and driver of this process," he said, referring to the plan to overhaul the core banking system towards automation.

The plan to streamline operations and boost shareholder returns was unveiled as part of the bank's new strategy. This marks the final phase of a nearly decade-long effort to transform from a potential acquisition target into a consistently profitable bank.

The Standard Chartered bank logo at its London headquarters (UK). Photo: Reuters

Standard Chartered's Hong Kong-listed shares rose 2,5% during morning trading on 19/5, while the Hang Seng index remained flat.

Many global corporations are currently accelerating AI adoption to enhance operational efficiency. Banks worldwide are also racing to integrate advanced AI models and address increasing cybersecurity risks.

Under its new strategy, Standard Chartered aims for a return on tangible equity (ROTE) exceeding 15% by 2028, a 3% increase from 2025, and targeting approximately 18% by 2030, surpassing some analysts' forecasts.

Standard Chartered expects to drive growth by focusing on higher-margin segments, such as affluent private clients and financial institutions within its corporate and investment banking division.

Standard Chartered continues to pursue stronger growth targets despite geopolitical instability casting a shadow over prospects in some key markets. According to analysts, banks in the Asia-Pacific region might need to increase provisions if the Iran conflict persists, given escalating energy prices and weakening growth putting pressure on borrowers.

Quynh Trang (according to Reuters)