StanChart CEO seeks to reassure staff members over 'lower value human capital' comment
The bank cited AI as a driver to slim its operations in its quest to increase profitability and tackle competition.
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HONG KONG: Standard Chartered CEO Bill Winters sought to assuage staff concerns on Wednesday (May 20), 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.
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StanChart said on Tuesday it would cut 15 per cent 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 prioritise investment in reskilling and redeployment wherever we can," he said.
"Where changes do happen, we will handle them with thought and care," he added.
StanChart's move to streamline operations and rein in costs comes as more global firms slash jobs by deploying AI to improve efficiency. Japanese lender Mizuho in March unveiled up to 5,000 job cuts over a decade.
HSBC Chief Executive Georges Elhedery said on Wednesday AI would destroy and create certain jobs in the financial industry, and the bank was retraining its workforce to meet the challenge.
In his memo, Winters said StanChart would continue to invest in technology, platforms and automation to improve operations and client services and position itself for long-term growth.
"I want to be absolutely clear that the future of Standard Chartered depends on the talent, judgement, relationships, and commitment of you, our colleagues," he said. "Our progress and ambition are only possible because of what we achieve together."
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