Yacob said it was 'demeaning' to describe retrenched employees as 'lower-value human capital'
Former Singaporean President Halimah Yacob has criticised as "disturbing" the words of Standard Chartered chief executive Bill Winters when he announced the widespread layoffs at the bank this week.
Winters, who spoke to investors in Hong Kong, revealed that the bank was eliminating approximately 7,800 back-office roles by 2030.
"It's not cost cutting: it's replacing, in some cases, lower-value human capital with the financial capital and investment capital we're putting in," Winters said.
His remarks immediately garnered backlash online for describing employees as "lower-value human capital."
On Facebook, Yacob joined the myriad of users critical of the CEO's choice of words.
"It's disturbing to read workers described as 'lower-value human capital' in the StanChart Chief Executive's announcement that the bank will be retrenching 7,800 workers by 2030 due to AI," the former president said on the social media platform.
"Workers are human beings with families, not just a form of capital. They too have contributed to the bank and now because of AI have become redundant. It's demeaning to describe them as 'lower-value human capital.'"
She also said the negative description is "not helpful" for the retrenched staff who will be looking for new jobs.
"Imagine the morale of those who remain behind knowing that they are just another form of capital to their employer, who don't really care about how they feel," Yacob added. "Carry out retrenchments humanely. Treat workers with respect."
The former president's remarks drew thousands of reactions from Facebook users, with many expressing agreement with her remarks.
"Indeed we are humans not machines, we have family and bills to pay too," one user commented under Yacob's post.
"The chief executive position has to go first. How about that?" another user commented.
Winters walks back on remarks
Winters has since walked back on his words in a memo to employees on Wednesday.
"Many of you have seen media coverage following the Investor Event in Hong Kong, particularly the reporting around automation, AI, and workforce changes," Winters said in the memo, as quoted by The Wall Street Journal.
"I know this may be unsettling when reduced to simple headlines or a quote out of context," he added. "Where roles do fall away, it reflects changes in the work, not the value of our people."
The CEO also underscored that the future of the bank depends on the "talent, judgment, relationships, and commitment" of employees.
"Our progress and ambition are only possible because of what we achieve together," he added.
Standard Chartered, headquartered in London, generates the majority of its revenue in Asia, Africa, and the Middle East. Its largest shareholder, Temasek Holdings Pte Ltd, is a Singapore-owned company.
