Standard Chartered (02888.HK) CEO Bill Winters issued a statement on Tuesday, May 19, regarding the replacement of 'low-value human resources' with financial capital, which drew criticism from the public.

On Friday, May 19, Winters posted on his personal LinkedIn account, expressing regret for his choice of words that may have upset some employees. In his post, he stated that Standard Chartered has long been actively assisting employees at risk of displacement due to automation by helping them develop new skills for emerging job opportunities and transitioning them to higher-value roles, which he described as the responsible action of an employer.

During an investor event, Standard Chartered announced plans to reduce non-frontline support positions by over 15% over the next four years. Winters noted that automation has been reshaping work and labor for centuries, and artificial intelligence is accelerating this process, which requires understanding and adaptation. He emphasized that the impact of technological change is a significant issue deserving serious and mature discussion, and he pledged to continue addressing these effects openly while responsibly supporting employees through the transition.

Winters further explained that Standard Chartered has consistently supported employees potentially affected by automation by helping them acquire new skills and find new opportunities within the bank. He pointed out that lower-value positions are more susceptible to automation, and as a responsible employer, the bank has a duty to assist colleagues in moving to higher-value roles, a process in which they have a strong track record of supporting internal transitions.

In another post, Winters provided a verbatim transcript of the discussion, which took place during a conversation about the launch of a new core banking system in Hong Kong. He mentioned, "Those employees who will be affected, and who are crucial to us finding the right solutions, are aware of the impact. Therefore, we start retraining them as early as possible. Since the markets we operate in are experiencing rapid growth, talent is scarce. For those willing to retrain and continue working, we offer every opportunity to reposition them. For those who feel they have given their best and are ready to move on, a compensation package will be provided at the end of the application migration. So this is not about cost-cutting. In some cases, it replaces lower-value human resources with the financial and investment capital we invest, but almost always with clear notice."

According to foreign media reports, Winters' Tuesday remarks attracted attention from regulatory authorities in Hong Kong and Singapore, who sought clarification on whether the bank was using artificial intelligence to implement layoffs. Winters also issued an internal memo to employees, stating that the dialogue's title had been simplified and the content taken out of context, and emphasized that Standard Chartered's future still relies on employee talent, customer relationships, and other factors.