StanChart to cut 7,000 jobs, targets higher 2028 return

Standard Chartered plans to cut more than 7,000 jobs, or about 15% of its corporate roles, by 2030 as the lender accelerates its adoption of artificial intelligence to boost returns. The move is part of a broader efficiency drive aimed at offsetting investments in new technology.

"Now the world understands that jobs are being replaced by machines, and if you're not doing that, shareholders are getting upset," Umesh Ramakrishnan, chief strategy officer at executive search firm Kingsley Gate, said.

The bank's announcement follows a wave of similar cuts across the technology sector, where companies like Meta and Cisco have shed thousands of jobs while increasing investment in AI. Standard Chartered is targeting a higher return on tangible equity in 2028, a goal it believes will be supported by long-term cost savings from a leaner, more tech-driven operation. The bank's CET1 ratio and loan growth rates were not yet disclosed.

This restructuring highlights a pivotal moment for the banking industry, accelerating job displacement trends and prompting a re-evaluation of operational models. While investors may cheer the potential for improved efficiency and profitability, the move sets a precedent that could see widespread workforce changes across the financial sector as it grapples with the rise of AI.

This article is for informational purposes only and does not constitute investment advice.