Standard Chartered, a British bank, announced on Tuesday plans to eliminate thousands of jobs by 2030. The move is driven by the use of Artificial Intelligence (AI) which is expected to replace employee roles in various fields, particularly in the field of administration.
Through an official statement, the Asia-focused bank announced plans to reduce more than 15 percent of the identified roles, equivalent to about 7,800 positions.
The bank, which has about 82,000 employees worldwide, did not specify which countries would be affected by the reductions. “The next phase of growth will be supported by a simpler, faster and more connected operating model,” it said.
It aims to streamline processes, improve results and increase customer service and internal efficiency.
Standard Chartered Chief Executive Bill Winters stressed that the bank is now actively investing in empowering new capabilities to strengthen competitiveness, thus driving sustainable growth and ensuring higher quality returns.
“Our strategy is based on a simple belief, the world is becoming more connected, more complex and more cross-border,” he said. Standard Chartered is targeting significant productivity gains, which it expects to boost employee earnings by about 20 percent by 2028.
Following the announcement, the group’s shares fell 0.9 percent on London’s FTSE 100, although the benchmark index rose 0.5 percent overall in morning trade.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said the job cuts were the focus, but the bigger message was management’s efforts to reduce operational complexity and fund growth in areas such as Asian wealth and corporate banking.
He said the bank’s investments remained based on the theme of banking growth in Asia, stronger fee income and continued cost discipline. The phenomenon of workforce reductions is now becoming more widespread across sectors as Artificial Intelligence (AI) plays an increasingly significant role in day-to-day operations.
Global firms such as US tech giant Amazon and German insurer Allianz have been among those to blame AI for recent job cuts.
Meanwhile, Meta and Microsoft have cut thousands of jobs this year in a bid to control operating costs, while increasing their investment in AI technology.
In addition, DeepL, an AI-based language translation company, earlier this month announced plans to cut about a quarter of its workforce, as AI technology has made some roles irrelevant.
Meanwhile, market analyst at XTB, Kathleen Brooks, believes that cost-cutting measures through AI do not guarantee an immediate surge in share prices.
She also warned that the impact of the technology could potentially undermine more strategic roles at the forefront of companies’ operations.
