Jakarta, CNBC Indonesia - A wave of AI-driven transformation is\nreshaping the global banking sector. Standard Chartered is among the\nlatest international banks to take significant steps by planning to\nreduce thousands of jobs in the coming years as it accelerates the\nadoption of artificial intelligence (AI).<\/p>\n
The UK-based bank is preparing major corporate efficiency measures,\ncutting around 15% of positions by 2030. Industry reports estimate this\nequates to over 7,000 low-value human capital roles from approximately\n52,000 staff in related divisions over the next four years.<\/p>\n
Standard Chartered CEO Bill Winters stressed that this is not merely\ncost-cutting but replacing low-value human capital with financial and\ninvestment capital.<\/p>\n
\u201cThis is not just about cost reduction. In some cases, we are\nreplacing low-value human capital with financial and investment capital\nwe are deploying,\u201d Winters told Reuters on Thursday, 28 May 2026.<\/p>\n
Globally, Standard Chartered has nearly 82,000 employees. Winters\nsaid job reductions would be achieved through automation and AI\nimplementation, though some staff would be offered retraining or\nreskilling opportunities.<\/p>\n
\u201cThose who wish to upskill and continue their careers will be given\nopportunities for repositioning,\u201d he said.<\/p>\n
The roles most affected are in the bank\u2019s back-office operations\ncentres, including Chennai, Bengaluru, Kuala Lumpur, and Warsaw. Winters\nadded that AI will be the primary facilitator in transforming the core\nbanking system.<\/p>\n
Standard Chartered\u2019s efficiency move comes as more global companies\ncut jobs to boost efficiency through AI. Japanese bank Mizuho Financial\nGroup previously announced plans to reduce up to 5,000 jobs over a\ndecade.<\/p>\n
Meanwhile, global banks are racing to integrate the latest AI models\nwhile facing escalating cyber threats.<\/p>\n
Despite the mass layoffs, Standard Chartered maintains aggressive\ngrowth targets. The bank aims for a return on tangible equity (ROTE)\nabove 15% by 2028, rising to around 18% by 2030.<\/p>\n
The company has also accelerated its net new funding target of $200\nbillion to 2028, ahead of the previous 2029 deadline. Business focus\nwill shift to higher-margin segments, including affluent retail\ncustomers and financial institutions.<\/p>\n
However, geopolitical challenges continue to loom over the global\nbanking sector. Standard Chartered, which focuses on Asia-Pacific and\nAfrica, acknowledged Middle East conflicts as a key risk.<\/p>\n
In the first quarter of this year, the bank set aside $190 million in\nprudence provisions related to Middle East conflicts.<\/p>\n
\u201cWe are very resilient,\u201d Winters said when asked about the impact of\ngeopolitical and market risks on the bank\u2019s ability to meet its business\ntargets.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/major-banks-ramp-up-mass-layoffs-as-ai-drives-cost-cutting-1779937750", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }