A millionaire bank boss has been forced to issue an apology after referring to some of his workers as 'low value human capital' that are doomed to be replaced by artificial intelligence (AI). Bill Winters, the CEO of Standard Chartered, announced at a Hong Kong event a new plan that included cutting 15 percent of his 'back office' workforce by 2030.
While speaking to journalists, the 64-year-old said AI would replace 'lower value human capital' as it has 'reshaped work and workforces for centuries.' In a follow-up LinkedIn post three hours later, Winters posted the transcript of his response to journalists to help his detractors 'better understand' the 'important point I was raising' after he received backlash on the four-word term.
He explained he gave his 'lower value' worker the option to start retraining for roles that wouldn't be displaced by AI. His employees also had the option to forego the extra training if they had decided they were done with the industry. 'So the people that want to reskill, that want to carry on, we're giving every opportunity to reposition,' he said, according to the transcript. 'It's not cost-cutting. It's replacing, in some cases, lower-value human capital with the financial capital and the investment capital that we're putting in. But almost always, with good, clear notice going forward.'
On LinkedIn, he further explained his thoughts, saying: 'AI is now accelerating that change in ways all of us are still working to understand and address.' He added: 'We also made clear that Standard Chartered has, for many years, invested actively in helping colleagues whose roles may be displaced by automation to build the skills needed for new opportunities within our organization.'
As the bank boss, whose net worth is an estimated $337 million, backtracked, he said his company has a 'responsibility to help colleagues move into higher-value roles.' Winters also apologized for how his words have upset his colleagues. 'I value our colleagues – all of them – most highly and that we are totally committed to helping them to cope with the accelerating pace of change in our industry,' he wrote.
His comments also put Hong Kong on edge, as Standard Chartered, which specializes in emerging market lending, heavily focuses on Asia and the Middle East. Hong Kong and Singapore regulators have sought clarity from Winters. Winters' comment came up in discussions with the Monetary Authority of Singapore on Wednesday, while the Hong Kong Monetary Authority asked Standard Chartered to explain the remarks, Bloomberg reported, citing people familiar with the matter. The regulators pressed the lender on the impact of job cuts in their markets, with the Hong Kong authority asking whether Standard Chartered was using AI as a pretext to cut staff, the report added.
His friend and mentor, JPMorgan CEO Jamie Dimon, defended Winters, saying that everyone misspeaks once in a while. 'Bill’s a friend of mine and all of us say something incorrectly,' he said. 'But I also think it will be all jobs. I don’t think it will be higher level, lower level. I think it will be more than you think.'
