- Joined
- Oct 5, 2012
- Messages
- 23,625
- Points
- 113
StanChart to cut about 7,800 jobs by 2030 as AI usage increases
The announcement was made at a briefing on May 19.
Standard Chartered (StanChart) announced plans to reduce its support workforce by more than 15 per cent, which is equivalent to about 7,800 jobs, by 2030, as the bank accelerates its adoption of artificial intelligence in a move to improve operational efficiency.
The announcement was made by Chief Executive Bill Winters at a briefing in Hong Kong on May 19.
Reallocation of resources
According to The Financial Times (FT), Winters had described the move as "not cost cutting", but instead, a strategic reallocation of resources.
The banking giant had approximately 52,000 employees in such support roles at the end of 2025, with operations concentrated across Singapore, Hong Kong, China, India, and Poland.
The corporate functions earmarked for reduction include human resources, risk and compliance across the group's worldwide operations.
This includes StanChart's hubs in Bengaluru, Shenzhen and Warsaw.
New financial targets
According to FT, StanChart said it had been able to hit its "fit for growth" annualised cost-savings target of US$1.5 billion (S$1.92 billion) a year in advance.
The company has since updated its targets, focusing on growing non-interest income by concentrating on affluent Chinese clients, trade finance and financial institutions.
The bank now targets a return on tangible equity of more than 15 per cent in 2028, rising to above 18 per cent by 2030.
This is up from the previous goal of more than 12 per cent for 2026.
StanChart also said it aims to lift income per employee by a fifth by 2028, while raising its dividend payout ratio to 30 per cent.
The workforce reduction reflects a wider trend of AI adoption reshaping corporate functions, particularly in areas such as IT support.
"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," Winters was quoted as saying.
Broader context
According to The Straits Times, StanChart had a record US$18 billion (S$23 billion) in net new money flows to its wealth management business in the first quarter, helping to offset US$190 million (S$243 million) in precautionary provisions set aside amid risks tied to the Middle East conflict.
Analysts cautioned that banks in the Asia-Pacific may need to increase loan-loss provisions further if the conflict persists, as elevated energy costs and slower growth weigh on borrowers
