StanChart To Slash 7,000 Jobs In a Bid To Raise Profitability

Standard Chartered Bank is preparing for major changes as it works to improve profits and strengthen its future business operations. The London-based bank, commonly known as StanChart, recently announced plans to cut more than 7,000 jobs by 2030 while increasing its investment in technology, automation, and artificial intelligence.

The bank said the job reductions are part of a long-term strategy to improve efficiency and raise profitability over the next several years. Standard Chartered aims to achieve a return on tangible equity of more than 15% by 2028 and around 18% by 2030. This is a major increase compared to its recent performance levels and reflects the bank’s confidence in its restructuring plans.

Most of the planned job cuts will affect support and back-office positions. StanChart currently has around 80,000 employees worldwide, including approximately 51,000 workers in support services. The bank expects more than 15% of its corporate function roles to be eliminated over the coming years.

According to CEO Bill Winters, the changes will mainly be driven by automation and the growing use of artificial intelligence. He explained that the bank is replacing lower-value manual work with technology and automated systems that can operate more efficiently. Some employees may also be retrained and moved into new roles as the company modernizes its operations.

Despite concerns about layoffs, investors reacted positively to the announcement. Shares of Standard Chartered rose more than 2% in Hong Kong trading after the bank revealed its new targets and restructuring plans. Investors appear to believe the strategy could help the bank remain competitive in an increasingly digital banking environment.

At the same time, Standard Chartered plans to continue expanding its wealth management business, which has become one of its strongest growth areas. The bank is focusing more on wealthy retail clients and financial institutions, especially across Asia and Africa, where it has a strong presence. In the first quarter of the year, StanChart reported record wealth management revenue and strong inflows of new client funds.

However, the bank still faces several global risks. Ongoing geopolitical tensions in the Middle East and economic uncertainty in some markets could affect growth and increase financial pressure on borrowers. StanChart recently set aside $190 million as a precaution against possible losses linked to regional conflicts.

The bank says it has already achieved some of its earlier financial goals ahead of schedule. After years of restructuring, Standard Chartered believes its latest strategy will create a leaner, more efficient organization that can deliver stronger profits in the future while adapting to rapid technological change in the banking industry.

AI and automation are increasingly being seen as ways to drive operational expenses down, and each entity, such as B. Riley Financial Inc. (NASDAQ: RILY), in the financial ecosystem will have to find its own formula for tweaking its operations as they adopt advanced technology.

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