HONG KONG - Standard Chartered plans to cut more than 7,000 jobs over the next four years as the bank accelerates automation and artificial intelligence adoption across its operations.

The lender announced on May 19 that it intends to reduce 15 per cent of its corporate function roles by 2030.

Based on Reuters calculations, the move could result in more than 7,000 redundancies from its current workforce of over 52,000 employees in corporate functions.

Standard Chartered employs nearly 82,000 staff globally.

Chief executive officer Bill Winters said the workforce reduction would be driven largely by automation and AI integration, while some employees would undergo reskilling.

“It’s not cost-cutting. It’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in,” he told reporters, as cited by CNA.

The bank is among the first major global lenders to formally outline large-scale job reductions linked directly to artificial intelligence adoption.

The restructuring forms part of Standard Chartered’s broader strategy to improve efficiency, increase profitability and remain competitive in a rapidly evolving financial sector.

The announcement was accompanied by updated shareholder return targets as the bank continues efforts to strengthen its long-term financial performance.

Standard Chartered’s Hong Kong-listed shares rose 2.5 per cent in morning trading following the announcement.

The bank’s latest measures come amid a wider global trend of companies deploying AI technologies to streamline operations and reduce costs.

Banks worldwide are also increasing investments in advanced AI systems while addressing growing cybersecurity risks.

Winters said the roles most affected by the restructuring would likely be located within the bank’s back-office operations.

These include centres in Chennai, Bangalore, Kuala Lumpur and Warsaw.

“Of course we’re using AI along the way and AI will be a huge facilitator and enabler of that,” he said.

He added that the bank is continuing efforts to automate more of its core banking systems.

The restructuring comes as Standard Chartered seeks to build on a decade-long turnaround strategy that transformed the lender from a potential takeover target into a more stable and profitable institution.

The bank is now aiming to strengthen growth despite ongoing geopolitical uncertainties affecting several of its key markets.

Analysts have warned that Asia-Pacific banks may need to increase loan-loss provisions further if tensions involving Iran and the Middle East continue.

Higher energy prices and weaker economic growth could place additional strain on borrowers across the region.

Standard Chartered, which maintains a strong focus on Asia-Pacific markets, set aside US$190 million in precautionary provisions linked to the Middle East conflict during the first quarter.

The London-headquartered bank also maintains significant operations in Africa.

“We achieved our 2026 medium-term financial targets a year earlier than planned.

“We now have a more focused, streamlined and efficient organisation,” Winters said in a statement.

The bank said it would continue prioritising higher-margin business areas, including affluent retail banking and financial institution services within its corporate and investment banking division.

During the first quarter, Standard Chartered recorded its highest wealth management revenue and strongest inflow of new client funds.

Separately, the lender announced the appointment of Manus Costello as its permanent chief financial officer.

Costello, previously the bank’s head of investor relations, succeeds Diego De Giorgi, who resigned in February after nearly three years in the role.