Standard Chartered Announces Reduction of Support Roles Amid Acceleration of Artificial Intelligence Initiatives

Standard Chartered Plc Aims to Boost Productivity with AI-Driven Job Cuts

Standard Chartered Plc has unveiled plans to slash support roles by more than 15%, as the lender seeks to leverage artificial intelligence to drive productivity improvements and raise income per employee. The move is part of the bank's efforts to increase its return on investment over the next four years.

The bank aims to increase income per employee by approximately 20% by 2028, with a reduction in corporate functions roles of more than 15% by 2030. The job cuts will be aided by the implementation of automation, advanced analytics, and artificial intelligence to streamline processes, improve decision-making, and enhance client service and internal efficiency.

Standard Chartered has also raised its return targets over the next four years. The lender aims to achieve a 3 percentage point improvement in return on tangible equity to 15% in 2028, and then to 18% by 2030. Additionally, the bank seeks to improve its costs to income ratio to 57% in 2028.

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The bank's Chief Executive Officer, Bill Winters, will discuss priorities, growth initiatives, and its financial framework for the medium-term at an event for analysts and investors in Hong Kong on Tuesday. The event is part of the bank's efforts to communicate its strategy and growth plans to investors.

The bank's "Fit for Growth" restructuring program, designed to streamline operations and deliver $1.5 billion in savings, is set to conclude this year. The initiative comprised hundreds of individual projects with targets ranging from minor operational tweaks to multi-million dollar overhauls.

After a strong start to the year, with earnings hitting records and comfortably outpacing analyst estimates, Standard Chartered's share price suffered a setback due to the surprise departure of Chief Financial Officer Diego De Giorgi and the outbreak of conflict in the Middle East. However, the share price has largely recovered since then.

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The bank has named Manus Costello, a former research analyst and critic of the bank, as its new chief financial officer. Costello was hired in 2024 as global head of investor relations and will replace De Giorgi, who was widely considered a top contender to eventually succeed Winters.