| Standard Chartered Plc plans to cut support roles by more than 15%, joining other lenders to use artificial intelligence to replace workers, as it raised its return targets over the next four years. The bank said it would drive productivity improvements to raise income per employee by about 20% by 2028, aided by a reduction in corporate functions roles of more than 15% by 2030, according to a statement on Tuesday. These roles are largely back-office support roles. The lender also laid out new return targets, including a 3 percentage point improvement in return on tangible equity to 15% in 2028 and then to 18% by 2030. It will also seek to improve costs to income ratio to 57% in 2028. ALSO READ: Meta Layoffs: Facebook Parent To Cut 10% Jobs On Wednesday, Closes 6,000 Open Roles — What We Know The bank is kicking off an event for analysts and investors in Hong Kong on Tuesday. Chief Executive Officer Bill Winters and his management team will discuss priorities, growth initiatives and its financial framework for the medium-term. "We are investing in the capabilities that will compound our competitive advantages and drive sustainable growth and higher quality returns over time, with clear targets in place," Winters said in a statement. The job reductions will be aided by the "scaling practical uses of automation, advanced analytics and artificial intelligence to streamline processes, improve decision-making and enhance both client service and internal efficiency." The bank is meeting with investors after earnings hit records and comfortably outpaced analyst estimates, bolstered by a record $18 billion in net new money flows to its wealth business. That helped cushion the blow from $190 million in "precautionary management overlays" set aside to navigate risks stemming from conflict in the Middle East. The bank's "Fit for Growth" restructuring program is slated to conclude this year. The initiative, designed to streamline operations and deliver $1.5 billion in savings, comprised hundreds of individual projects with targets ranging from minor operational tweaks to multi-million dollar overhauls. After surging almost 120% between early April 2025 and early February this year, the share rally suffered a setback, first from the surprise departure of Chief Financial Officer Diego De Giorgi, and later from the outbreak of the conflict in the Middle East. They have largely recovered since then. ALSO READ: TCS Asks Managers To Put 5% Staff In Band D, Stoking Fears Of Fresh Layoffs: Report De Giorgi, a veteran of Bank of America Corp. and Goldman Sachs Group Inc., was widely considered a top contender to eventually succeed Winter. The lender on Monday named Manus Costello as its new chief financial officer, promoting a former research analyst and critic of the bank to replace De Giorgi. Costello was hired in 2024 as as global head of investor relations. |
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