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

Standard Chartered has announced a major organisational restructuring plan that will cut more than 7,000 jobs over the next four years as it seeks to improve operational efficiency through artificial intelligence (AI) and automation.

The move makes Standard Chartered one of the major global financial institutions accelerating the use of AI to reduce personnel costs in a serious way.

The London-headquartered bank said AI would play a key role in making the organisation “leaner and more agile” as it responds to intensifying competition in the financial sector and seeks to improve long-term profitability.

The plan will involve cutting about 15% of roles in corporate functions by 2030. That division currently has more than 52,000 employees, meaning more than 7,000 positions will be eliminated. The bank currently employs almost 82,000 people worldwide.

Bill Winters, the bank’s chief executive officer, said the cuts were “not just about reducing costs”, but about replacing “lower-value human resources” with investment in technology and digital systems.

However, the bank said affected employees would be given opportunities to reskill and move into new roles to support the transition into the digital era.

The positions most affected will be in back-office operation centres in several countries, including Chennai and Bengaluru in India, Kuala Lumpur in Malaysia, and Warsaw in Poland.

The restructuring comes as financial institutions around the world accelerate their adoption of AI to cut costs and improve operational efficiency.

Japan’s Mizuho Financial Group has also previously announced a plan to cut up to 5,000 jobs over a 10-year period.