Discussions with the Monetary Authority of Singapore included these comments on Wednesday, while the Hong Kong Monetary Authority requested the lender to clarify Winters’ statements, according to sources familiar with the matter. Some regulators inquired about the implications of job reductions in their respective markets, speaking on the condition of anonymity due to the confidential nature of the discussions.
Winters’ remarks, made earlier this week in the context of artificial intelligence’s role in the bank’s plan to cut thousands of jobs, sparked criticism on social media and throughout Asia, a region that significantly contributes to the bank’s profits. This incident highlights the challenging position CEOs face as shareholders demand cost reductions and increased AI integration, while companies try to convey sympathy for affected employees.
“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 stated during a briefing in Hong Kong on Tuesday. His comments followed the London-based lender announcing plans to cut nearly 8,000 support roles over the coming four years, positioning it as one of the first global banks to outline how it intends to utilize AI for workforce reductions.
The HKMA inquired whether these comments indicated that the bank intended to use AI as a justification for staff cuts, according to one of the sources. The remarks also alarmed senior management at Standard Chartered in London and staff across various operations, including in India, where the bank employs approximately 27,000 individuals in cities like Bengaluru and Chennai, according to those familiar with the discussions.
MAS reported that it “regularly engages with major banks in Singapore on key aspects of their business.” Standard Chartered employs around 9,000 staff in Singapore, per its website, and its largest shareholder is the prominent state-owned investment entity Temasek Holdings Pte.
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The HKMA stated that it routinely interacts with authorized institutions on a variety of topics. A spokesperson noted that the regulator does not comment on everyday supervisory conversations or speculative remarks in an email statement.
“It’s common practice to have regular dialogue with our regulators on wide-ranging topics, including on strategy and growth plans,” according to an emailed statement from Standard Chartered. “Talent is core to our strategy as we continue to invest to create new, reskill, and redeploy roles – this will be done in line with regulatory expectations.”
Winters aimed to reassure employees at the bank a day after his comments.
“Many of you may have seen media coverage following the Investor Event in Hong Kong, particularly reports related to automation, AI, and workforce changes,” he conveyed in a memo to staff that was reviewed by Bloomberg News. “I understand this may be unsettling when reduced to simple headlines or quotes taken out of context.”
In a prior memo to staff before the investor briefing, Winters asserted that “where roles do fall away, it reflects changes in the work, not the value of the people.”
Critics of his “lower-value human capital” statement included former Singapore President Halimah Yacob, who expressed her disapproval in a Facebook post, labeling the terminology as “disturbing” and “demeaning” to describe workers in such technical terms.
Dimon Defends
JPMorgan Chase & Co. CEO Jamie Dimon, who previously worked with Winters, defended him during an interview on Thursday when discussing AI and employment prospects in the banking industry.
“Bill’s a friend of mine, and we all say things incorrectly,” Dimon remarked on Bloomberg Television in Shanghai. “It was an inartful way to express something.” He added that AI will impact more jobs than anticipated, “but it will also create some jobs,” he noted.
Shares of Standard Chartered increased by 0.2% on Thursday in London. The stock has appreciated approximately 65% over the past year, despite facing challenges including the unexpected departure of Chief Financial Officer Diego De Giorgi and the breakout of conflict in the Middle East.
