Standard Chartered to cut 15% of corporate functions roles by 2030

Standard Chartered has announced plans to cut more than 15% of its corporate functions roles by 2030 in an effort to increase income per employee by 20% by 2028. This workforce reduction will primarily affect roles in human resources, corporate affairs, and supply chain management. The bank, which currently employs around 82,000 people, aims to enhance profitability and achieve a return on tangible equity of 15% in 2028 and 18% in 2030.

CEO Bill Winters emphasized the importance of investing in capabilities that will drive sustainable growth and higher quality returns over time. Analysts at Jefferies described the new targets as conservative yet promising, with the potential to deliver mid-teens earnings-per-share growth. The bank’s London-listed shares are currently trading at 1,921.50, with a buy rating and a price target of 2,250 set by Jefferies.

In a recent financial report, Standard Chartered reported a 17% profit increase, driven by strong performance in its Wealth Solutions, Global Banking, and Global Markets segments. However, the bank also incurred a $190 million charge related to expected losses from the Middle East conflict. Despite this setback, Standard Chartered remains focused on leveraging the Middle East’s trade potential with Asia and other markets to drive growth.

Last month, the bank partnered with the International Finance Corporation to launch a $300 million risk-sharing facility aimed at strengthening supply chains and supporting business growth in Africa. This initiative will focus on providing supply chain finance solutions in eight markets, including Ghana and Kenya.

Standard Chartered’s revenue is predominantly generated from Asia, Africa, and the Middle East, with a significant portion coming from the Middle East. The bank’s strategic focus on these regions, combined with its commitment to enhancing profitability and efficiency, positions it well for sustained growth and value creation in the years ahead.