On May 18, local time, SC announced its strategy to investors, stating it will cut more than 15% of its corporate function workforce by 2030. The 15% reduction pertains specifically to corporate functions, including human resources, risk management, compliance, and operations support, rather than the entire employee base.
According to Reuters, the reduction in corporate functions will affect more than 7,000 of the bank's approximately 80,000 employees. The Financial Times reported the figure could be around 7,800.
The cuts will be driven by the adoption of AI and automation, with SC aiming to reduce repetitive tasks and enhance productivity. CEO Bill Winters stated, "We will also provide retraining for some employees."
This workforce adjustment aligns with SC's goal of improving profitability. The bank aims to increase its return on tangible equity (ROTE) to over 15% by 2028 and plans to raise it to approximately 18% by 2030.
SC will focus on enhancing profitability in its wealth management and corporate and investment banking sectors. The bank has set a target to increase revenue per employee by about 20% by 2028, reallocating resources to more profitable areas as it reduces back-office functions.
* This article has been translated by AI.
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