Standard Chartered CEO reassures staff after 'lower-value human' backlash

Bill Winters' remarks on using artificial intelligence to replace 'lower-value human capital' triggered a sharp backlash on social media

By Denise Wee, Ambereen Choudhury and Kiuyan Wong

 

Standard Chartered Plc Chief Executive Officer Bill Winters sought to reassure staff after his remarks on using artificial intelligence to replace “lower-value human capital” triggered a sharp backlash on social media and from a former head of state.

 

“Many of you will have seen media coverage following the Investor Event in Hong Kong, particularly the reporting around automation, AI, and workforce changes,” Winters wrote in a memo to staff on Wednesday that was seen by Bloomberg News. “I know this may be unsettling when reduced to simple headlines or a quote out of context.”

 

 

The memo was confirmed by a Standard Chartered spokesman.

 

Winters’ remarks on Tuesday came as the London-based lender disclosed that it plans to eliminate close to 8,000 support roles over the next four years, one of the first global banks to set out how it expects AI to trim headcount.

 

“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,” Winters said at a briefing, adding that affected employees would receive “good clear notice” ahead of time.

 

The phrasing drew condemnation on social media and across Asia, a region that generates the bulk of the bank’s profits.

 

Among the critics was former Singapore President Halimah Yacob, who condemned the executive’s terminology in a Facebook post, calling it “disturbing” to describe workers in such clinical terms. Singapore and Hong Kong serve as the primary hubs for Standard Chartered’s global operations.

 

In a LinkedIn post following the briefing in Hong Kong, Winters didn’t directly refer to AI or the job reductions. Still, some LinkedIn members left scorching comments. 

 

“You call human beings ‘lower value human capital? I live in Hong Kong and will never do business with your bank,” one of the commentator said.

 

In his Wednesday memo to employees, Winters adopted a more empathetic tone, emphasizing the bank’s commitment to transitioning its workforce.

 

“We will continue to invest in technology, platforms, and automation to improve how we operate, serve clients and position the Bank for long-term growth,” Winters said. “I want to be absolutely clear that the future of Standard Chartered depends on the talent, judgement, relationships, and commitment of you, our colleagues.”

 

While headquartered in London, Standard Chartered’s generates the vast majority of its revenue in Asia, Africa, and the Middle East. Singapore is home to its largest shareholder, the state-owned investor Temasek Holdings Pte. 

 

A spokesman for Temasek declined to comment on the CEO’s remarks from Tuesday.