LONDON —With its CEO saying “lower-valued human capital” will be targeted, Standard Chartered said it plans to cut more than 15% of its corporate-function workforce by 2030 as the bank expands its use of artificial intelligence and automation, a move that could eliminate more than 7,000 jobs globally, according to multiple news reports Tuesday.
The London-based bank said the reductions would primarily affect back-office and support roles as it seeks to improve efficiency and profitability through increased AI adoption, according to Reuters and other media outlets covering the company’s investor presentations and executive briefings.
Reuters reported the cuts would amount to more than 7,000 positions from the bank’s approximately 52,000 corporate-function roles. The bank employs nearly 82,000 people worldwide.
Remark Draws Criticism
CEO Bill Winters drew criticism after describing some of the positions targeted for replacement as “lower-value human capital,” according to Reuters, The Wall Street Journal and other publications.
“It’s not cost-cutting,” Winters told reporters, according to Reuters. “It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in.”
According to Reuters, Winters said automation and AI adoption would drive the workforce reductions while some employees would be retrained for other positions.
Areas That Will See Cuts
The bank said roles in human resources, compliance, risk and other operational areas could be affected, with major back-office centers in Chennai and Bengaluru, India; Kuala Lumpur, Malaysia; and Warsaw, Poland expected to see some of the deepest reductions, according to Reuters, The Times of London and other reports.
The cuts were unveiled as Standard Chartered outlined broader financial targets that include increasing its return on tangible equity above 15% by 2028 and to 18% by 2030, according to Reuters and Financial News London.
