Standard Chartered CEO Bill Winters and his team spent Wednesday in damage-control mode after the head of the London-based international bank told investors on Tuesday that artificial intelligence would be used to replace "lower-value human capital," sparking a backlash online.
"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 an internal memo to employees on Wednesday that was seen by Bloomberg.
He continued, "I know this may be unsettling when reduced to simple headlines or a quote out of context."
The outrage stems from STAN's Tuesday announcement to cut 15% of its corporate roles (about 7,800 jobs) by 2030 as part of a broader efficiency push amid the adoption of AI.
During the investor event, Winters said, "It's not cost-cutting, it's replacing low-value human capital with financial and investment capital." The substitution of workers in favor of machines "will accelerate as we go forward into AI."
Bloomberg noted that Winters' memo sent to workers earlier today "adopted a more empathetic tone, emphasizing the bank's commitment to supporting its workforce during the transition."
That memo read, "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. I want to be absolutely clear that the future of Standard Chartered depends on the talent, judgment, relationships, and commitment of you, our colleagues."
Socialists were not thrilled with Winters' "lower-value human capital" comment:
"Angry? You should be! This is how the employer described its staff: "lower-value human capital."
Beyond StanChart, corporate America is losing engineers and other white-collar workers who are burdened by insurmountable student and credit card debt as AI adoption accelerates. This era will likely be remembered as the great "white-collar purge," and the response may be continued backlash toward data centers.
Earlier today, Meta began cutting 8,000 jobs, while leaked audio of CEO Mark Zuckerberg described how AI is monitoring high-skilled employees. According to X user Official Layoff, who leaked the audio: "AI is replacing the contractor. Then the employee trains the AI. Then the AI replaces the employee."