The chief executive of Standard Chartered has sought to clarify his remarks about artificial intelligence replacing 'lower-value human capital', following widespread criticism as the bank announced major job cuts. Bill Winters sent a memo to employees, seen by the Press Association, insisting that his comments were taken 'out of context'.
Job Cuts and AI Investment
On Tuesday, the Asian-focused bank unveiled plans to cut approximately 7,800 jobs as it accelerates the use of AI across its operations. The London-based banking giant aims to reduce more than 15% of back-office roles by 2030. During the announcement, Mr Winters told media that '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'.
Backlash and Clarification
The comments sparked a backlash from shareholders, employees, and on social media, including from former Singaporean president Halimah Yacob, who posted on Facebook: 'It's disturbing to read workers described as lower-value human capital.' In his memo, Mr Winters acknowledged the unease, stating: '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 for Profitability
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 fresh strategy by Mr Winters to boost profitability, particularly in its significant Asian operations. The bank hopes the plan will lift its return on tangible equity (RoTE) above 15% by 2028, up three percentage points from 2025. It also aims to lower its cost-to-income ratio through increased efficiency and raise income per employee by around 20% by 2028.
