The chief executive of Standard Chartered has apologised for comments suggesting artificial intelligence would replace “lower-value human capital”, following a backlash as the bank announced thousands of job cuts.
Bill Winters, who leads the Asia-focused lender, sent a memo to employees on Friday, seen by the Press Association, stating that his remarks were taken “out of context”. The clarification came after widespread criticism from shareholders, staff, and public figures, including former Singaporean president Halimah Yacob.
Controversial Comments
On Tuesday, Standard Chartered unveiled plans to cut approximately 7,800 jobs as it accelerates the adoption of AI across its operations. The London-based banking giant aims to reduce back-office roles by more than 15 per cent by 2030.
During the announcement, Mr Winters told media: “It’s not cost-cutting – it’s replacing in some cases lower-value human capital with the financial capital and the investment capital we’re putting in.” The phrase “lower-value human capital” sparked immediate backlash.
In a Facebook post, Halimah Yacob wrote: “It’s disturbing to read workers described as ‘lower-value human capital’.”
CEO’s Clarification
In his memo, Mr Winters said: “Many of you will have seen media coverage following the investor event in Hong Kong, particularly the reporting around automation, AI, and workforce changes. I know this may be unsettling when reduced to simple headlines or a quote out of context.”
He added: “Where roles do fall away, it reflects changes in the work, not the value of our people.”
Strategic Shift
Standard Chartered, which employs around 82,000 people mostly in back-office roles, is the latest firm to cut staff in favour of automation. The job cuts are part of a broader strategy by Mr Winters to improve profitability, particularly in the bank’s key Asian markets.
The bank hopes the plan will boost its return on tangible equity (RoTE) – a key profit measure – to over 15 per cent by 2028, a three percentage point increase from 2025. It also aims to lower its cost-to-income ratio and increase income per employee by around 20 per cent by 2028 through productivity improvements.
