The chief executive of Standard Chartered has backtracked on remarks suggesting artificial intelligence would replace 'lower-value human capital' after facing widespread backlash as the bank announced significant job cuts.
Bill Winters, who leads the Asian-focused lender, sent a memo to employees, seen by the Press Association, stating that his comments were taken 'out of context'. He acknowledged that the media coverage following the investor event in Hong Kong, particularly regarding automation, AI, and workforce changes, may have been unsettling when reduced to simple headlines or quotes taken out of context. Winters emphasised that where roles do fall away, it reflects changes in the work, not the value of the people.
The clarification comes after the bank announced on Tuesday that it would cut approximately 7,800 jobs as it intensifies the use of AI across its operations. The London-based banking giant plans to reduce more than 15% of back-office roles by 2030. During the announcement, Winters had told the media that the move was not about cost cutting but about replacing, in some cases, 'lower-value human capital' with financial and investment capital. This phrasing drew sharp criticism from shareholders, employees, and social media users, including former Singaporean president Halimah Yacob, who described it as 'disturbing' to see workers described in such terms.
Standard Chartered, a FTSE 100 constituent, employs around 82,000 people, with a majority in back-office roles. The job cuts are part of a broader strategy by Winters to improve profitability, particularly in the bank's significant Asian operations. The bank aims to boost its return on tangible equity (RoTE) to over 15% by 2028, a three percentage point increase from 2025, and to lower its cost-to-income ratio through efficiency drives. Additionally, the bank expects the changes to drive productivity improvements, raising income per employee by about 20% by 2028.
Standard Chartered is the latest company to reduce its workforce in favour of increased automation and the adoption of new technologies, reflecting a growing trend across industries.
