HONG KONG: Standard Chartered said on May 19 that it will eliminate more than 7,000 jobs over the next four years as the bank increases its use of artificial intelligence and automation to streamline operations and improve profitability.

The London-based lender said it plans to cut 15 percent of roles in its corporate functions by 2030. Based on Reuters calculations, that would amount to more than 7,000 positions out of roughly 52,000 jobs in those areas.

Chief Executive Officer Bill Winters said the move is aimed at reshaping the bank rather than simply reducing costs. "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," Winters told reporters.

Standard Chartered employs nearly 82,000 people worldwide. Winters said automation and artificial intelligence will drive the reduction, but employees willing to retrain will have opportunities to move into new roles.

"So, the people that want to reskill, that want to carry on, we're giving every opportunity to reposition," Winters said.

The roles most likely to be affected are in back-office centers in Chennai, Bengaluru, Kuala Lumpur, and Warsaw. "Of course, we're using AI along the way, and AI will be a huge facilitator and enabler of that," Winters said.

The announcement came as Standard Chartered unveiled new profitability targets. The bank said it aims to generate a return on tangible equity of more than 15 percent by 2028 and about 18 percent by 2030, up from 2025 levels.

The lender is also accelerating its wealth management goals, bringing forward a target to attract US$200 billion in net new client money to 2028 from 2029.

Standard Chartered has spent the past decade rebuilding under Winters after once being seen as a potential takeover target. Its shares have risen about 65 percent over the past 12 months.

Ed Firth, an analyst at Keefe, Bruyette & Woods, said the targets appeared cautious. "In a world full of uncertainty, performance may prove more challenging further out," Firth said.

The bank, which focuses on Asia-Pacific and Africa, said it remains confident despite geopolitical risks. It set aside $190 million in precautionary provisions in the first quarter related to the Middle East conflict. "We are extremely resilient," Winters said when asked about the impact of geopolitical and market risks.

The bank also announced that Manus Costello, formerly head of investor relations, has been appointed permanent Chief Financial Officer, succeeding Diego De Giorgi, who resigned in February.