Standard Chartered CEO Seeks to Reassure Staff over AI-linked Job Cuts

Standard Chartered CEO Bill Winters sought to assuage staff concerns on Wednesday, a day after saying that the bank will cut thousands of jobs over the next four years as it moves to replace “lower-value human capital” with technology. “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 said in a memo to the bank’s ⁠staff reviewed by ⁠Reuters. “I know this may be unsettling when reduced to simple headlines or a quote out of context,” he said. A spokesperson for the bank confirmed the memo’s content. StanChart said on Tuesday it would cut 15% of ⁠its corporate function roles by 2030, which, according to a Reuters calculation, would result in nearly 8,000 redundancies out of its more than 52,000 staff in such roles. The bank cited AI as a driver to slim its operations in its quest to increase profitability and tackle competition. “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 on Tuesday. In his memo to staff on Wednesday, Winters said the bank had been open that its workforce will evolve. “Some roles will reduce in number, some will change, and new opportunities will emerge. We will continue to prioritize investment in reskilling and redeployment wherever we can,” he said. “Where changes do happen, we will handle them with thought and care,” he added.