Major British bank to slash 7,800 jobs as bosses admit 'it's replacement, not cost-cutting'

Standard Chartered has announced plans to cut around 7,800 back-office jobs by the end of the decade as the banking giant accelerates its use of artificial intelligence (AI) across global operations.

The UK-headquartered lender revealed the cuts would account for more than 15 per cent of its support function workforce as it pushes ahead with a major strategic overhaul.

Chief executive Bill Winters confirmed departments including human resources, risk management and compliance would face the largest reductions.

The cuts will affect employees across Standard Chartered’s international network, with major operational centres in Bengaluru, Shenzhen and Warsaw among those expected to be impacted.

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The bank said some workers could be redeployed into different positions, while training programmes may allow others to transition into new roles elsewhere within the organisation.

Mr Winters insisted the move should be viewed as an investment in the future of the business rather than a straightforward cost-cutting programme.

He said: "It’s not cost-cutting. It’s replacing, in some cases, lower-value human capital with the financial capital and investment capital we’re putting in."

The chief executive was also direct about the growing influence of artificial intelligence on the bank’s future workforce structure.

Mr Winters said there would be job "reductions in favour of machines, and that will accelerate as we go forward into AI".

He also acknowledged that retraining schemes may help some employees move into alternative positions within the company.

The announcement formed part of a broader investor presentation in Hong Kong where Mr Winters, the longest-serving chief executive among Britain’s major banks, outlined a series of ambitious financial targets.

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The lender is also targeting a return on tangible equity of more than 15 per cent by 2028, compared with its existing goal of above 12 per cent by 2026.

By the end of the decade, the bank said it intends to deliver returns exceeding 18 per cent.

The dividend payout ratio will also rise to 30 per cent under the new strategy.

Investors reacted positively to the announcement, with shares climbing 2.5 per cent during afternoon trading in Hong Kong.

Over the past 12 months, Standard Chartered’s stock has surged 68 per cent, leaving the bank with a market capitalisation of around £42billion.

The lender also confirmed it had achieved its "fit for growth" cost savings target of $1.5billion annually ahead of schedule.

The announcement reflects a wider wave of AI-driven restructuring across the global financial sector as banks increasingly automate operations and shift more services online.

Morgan Stanley has predicted that more than 200,000 banking jobs across Europe could disappear over the next five years as firms adopt artificial intelligence technology more aggressively.

Other major lenders have already begun reducing headcounts in response to rapid technological change.

Singapore’s largest bank, DBS, announced in February that it expected to cut around 4,000 contract and temporary jobs over a three-year period.

Technology companies have also launched substantial workforce reductions this year as AI investment intensifies.

Meta revealed in April that it would cut around 8,000 jobs, representing 10 per cent of its workforce, while leaving thousands of positions vacant.

Amazon has also announced plans to remove more than 30,000 roles, while Oracle has cut more than 10,000 jobs.

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