Standard Chartered’s AI-driven job cuts have come under fresh scrutiny after CEO Bill Winters’ ‘lower-value human capital’ remark drew criticism, Bloomberg reported.
The bank plans to cut more than 15 percent of corporate function roles by 2030 as it uses technology to streamline operations and lift returns.
Reuters estimated that the move could affect nearly 8,000 jobs, based on more than 52,000 employees in those functions.
Winters made the comment at an investor event in Hong Kong, where he framed the plan as a shift in spending towards technology and automation.
He later sent an internal memo to employees, acknowledging that the way the comments were reported may have caused concern among staff.
Winters told employees that Standard Chartered would continue to change its workforce as the bank adjusts to new technology.
Some jobs may be phased out or redesigned, while the lender would look for ways to move affected staff into other roles where possible.
The bank has positioned the cuts as part of a wider plan to make operations leaner, improve productivity and lift profitability.
It has also pointed to automation, advanced analytics and AI as tools to improve internal processes and client service.
The episode highlights the challenge facing banks as they use AI to lower costs while managing concerns over the impact on employees.
Winters added that the bank’s future still depends on employees’ talent, judgment, relationships and commitment.
Featured image: Edited by Fintech News Singapore, based on image by mangpor2004 via Magnific
