Reports from international media indicate that Standard Chartered Group (02888.HK) announced plans on Tuesday, May 19, to reduce 15% of its corporate function-related roles by 2030. The bank's CEO, Bill Winters, stated that the move is not aimed at cutting costs but rather at making investments to replace "lower-value human capital." This statement has not only raised concerns among internal staff and sparked heated online discussions but has also attracted the attention of regulatory authorities and drawn condemnation from Singapore's former president, Halimah Yacob.
Regulatory bodies have taken note of the situation. According to sources cited by Bloomberg, regulators in Hong Kong and Singapore have sought clarification from Standard Chartered.
Reports indicate that the Hong Kong Monetary Authority inquired whether the remarks implied that the bank was using AI as a pretext for layoffs and requested an explanation of Winters' comments. A spokesperson for the HKMA responded, stating that "the HKMA regularly communicates with banks on a wide range of matters and does not comment on daily supervisory dialogues or speculative media reports."
The Monetary Authority of Singapore engaged in discussions with Standard Chartered regarding the issue on Wednesday, May 20. In response to media inquiries, MAS noted that it "regularly communicates with major banks in Singapore on key aspects of their business."
According to local media in Singapore, Standard Chartered Singapore stated, when asked, that it would continue to hire client relationship managers in Singapore and the ASEAN region.
Other regulatory authorities have also questioned the bank about the impact of layoffs in their respective markets.
Standard Chartered stated that maintaining regular dialogue with regulators on various topics, including strategy and growth plans, is standard practice. Talent is at the core of the bank's strategy, and it will continue to invest in creating new roles, retraining, and redeploying positions, aligning with regulatory expectations.
The remarks have also caused unease among the bank's senior management and employees. Sources report that Winters' recent comments have unsettled senior executives in London and staff, including those in the Indian operations. Standard Chartered employs approximately 27,000 people in cities such as Bangalore and Chennai in India.
In response, Winters urgently issued an internal memo to staff on Wednesday, emphasizing the bank's commitment to helping employees transition. In a memo reviewed by Reuters, Winters wrote: "Many of you will have seen media coverage of our Hong Kong Investor Day, particularly around automation, AI, and changes to our workforce structure." He added: "I recognize that when this is distilled into headlines or quoted out of context, it can be unsettling."
A spokesperson for Standard Chartered later confirmed the authenticity of the memo. In the memo distributed to employees on Wednesday, Winters further explained that the bank has always been transparent about the ongoing evolution of its workforce structure. He stated: "Some roles will reduce in number, some will change, and new opportunities will emerge." He emphasized that the bank will continue to prioritize skills retraining and internal mobility to help staff adapt to changes. He also noted: "Where changes do result in a reduction of roles, we will handle them with care and consideration."
The CEO's reference to affected employees as "low-value human capital" has sparked backlash on social platforms, including LinkedIn and Facebook.
Singapore's former president, Halimah Yacob, publicly condemned the remarks, arguing that such a description devalues employees. She called on companies to handle layoffs in a more humane manner, showing employees the respect they deserve.
In a post on the social media platform Facebook on Tuesday evening, May 19, former President Halimah stated that Winters' comments were deeply unsettling. She remarked that employees are individuals with families, not merely a form of "capital." They have contributed to the bank, yet are now being made redundant due to advancements in artificial intelligence. Describing them as "lower-value human capital" is demeaning and disrespectful.
Halimah also noted that employees who are laid off need to find new employment. Such negative labeling is unhelpful to them. "Consider the impact on the morale of the remaining staff when they realize they are merely another form of 'capital' in the eyes of their employer. This only gives the impression that the company does not genuinely care about its employees' feelings."
In conclusion, she stated that even when layoffs are unavoidable, they should be conducted in a humane and respectful manner, urging companies to "accord employees the dignity they deserve."
According to Standard Chartered's official website, its largest shareholder is Singapore's Temasek Holdings. The bank employs approximately 9,000 people in Singapore.
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