Major Banks Ramp Up Mass Layoffs as AI Drives Cost-Cutting
Jakarta, CNBC Indonesia - A wave of AI-driven transformation is reshaping the global banking sector. Standard Chartered is among the latest international banks to take significant steps by planning to reduce thousands of jobs in the coming years as it accelerates the adoption of artificial intelligence (AI).
The UK-based bank is preparing major corporate efficiency measures, cutting around 15% of positions by 2030. Industry reports estimate this equates to over 7,000 low-value human capital roles from approximately 52,000 staff in related divisions over the next four years.
Standard Chartered CEO Bill Winters stressed that this is not merely cost-cutting but replacing low-value human capital with financial and investment capital.
“This is not just about cost reduction. In some cases, we are replacing low-value human capital with financial and investment capital we are deploying,” Winters told Reuters on Thursday, 28 May 2026.
Globally, Standard Chartered has nearly 82,000 employees. Winters said job reductions would be achieved through automation and AI implementation, though some staff would be offered retraining or reskilling opportunities.
“Those who wish to upskill and continue their careers will be given opportunities for repositioning,” he said.
The roles most affected are in the bank’s back-office operations centres, including Chennai, Bengaluru, Kuala Lumpur, and Warsaw. Winters added that AI will be the primary facilitator in transforming the core banking system.
Standard Chartered’s efficiency move comes as more global companies cut jobs to boost efficiency through AI. Japanese bank Mizuho Financial Group previously announced plans to reduce up to 5,000 jobs over a decade.
Meanwhile, global banks are racing to integrate the latest AI models while facing escalating cyber threats.
Despite the mass layoffs, Standard Chartered maintains aggressive growth targets. The bank aims for a return on tangible equity (ROTE) above 15% by 2028, rising to around 18% by 2030.
The company has also accelerated its net new funding target of $200 billion to 2028, ahead of the previous 2029 deadline. Business focus will shift to higher-margin segments, including affluent retail customers and financial institutions.
However, geopolitical challenges continue to loom over the global banking sector. Standard Chartered, which focuses on Asia-Pacific and Africa, acknowledged Middle East conflicts as a key risk.
In the first quarter of this year, the bank set aside $190 million in prudence provisions related to Middle East conflicts.
“We are very resilient,” Winters said when asked about the impact of geopolitical and market risks on the bank’s ability to meet its business targets.