Bill Winters: Layoffs Replace 'Lower Value' Employees

Jamie Dimon, Chief Executive Officer of JPMorgan Chase, has addressed the workforce implications of artificial intelligence in banking after Standard Chartered's chief executive faced criticism for his language around staff reductions.

Bill Winters, chief executive of Standard Chartered, discussed plans to reduce support staff on 19 May. He says the bank is "replacing in some cases lower-value human capital with the financial capital and the investment we're putting in".

The comments drew criticism from employees and industry observers who felt the language was insensitive. Bill later clarifies his position in a company memo on 20 May, stating, "where roles do fall away, it reflects changes in the work, not the value of our people."

China Summit in Shanghai on 21 May, Jamie says the remarks could have been better phrased. "Bill's a friend of mine, and all of us say something incorrectly," Jamie says. "It was an inartful way to say something."

Technology impact on roles

Jamie discussed how artificial intelligence could affect workers across different skill levels in banking. "Every app, every process, every job will be affected," he says.

He outlined how technology trends are changing JPMorgan's operations in marketing, fraud detection, hedging and document management. The bank has been investing heavily in AI capabilities across its global operations, deploying resources to ensure it remains competitive in an increasingly technology-driven financial services landscape. According to Jamie, these changes are just the "tip of the iceberg" as the banking sector continues to evolve.

When asked about workforce reductions, Jamie offered details on how JPMorgan might approach staff transitions. "We're going to be prepared to say, 'Okay, we love these people, they're great, we're going to take care of them. We're going to give them re-skilling, new skills, better jobs, move them somewhere else, maybe early retirement,'" he says.

Jamie added that it was "incumbent" on society as a whole to prepare for potential mass job losses triggered by AI.

Training and transition planning

Jamie suggested educational institutions could work with local businesses to provide training courses. These programmes could equip students with practical skills and job offers upon graduation, creating clearer pathways between education and employment in an evolving job market.

"There are going to be eight million trade jobs, which pay US$100,000 a year, available in the US in the next five years," he added.

In a March interview with CBS, Jamie discussed how artificial intelligence integration could reduce the working week to 3.5 days over the next 30 years. He says the technology could cure cancers, make planes and cars safer and allow people to spend more time focusing on hobbies and things that matter to them.

JPMorgan currently ranks first in the Evident AI Index, which serves as a global benchmark for AI integration in the banking sector.

Sector-wide technology adoption

Banks are accelerating their artificial intelligence strategies as competition intensifies. Revolut introduced an AI agent in April designed to showcase spending insights, investment updates and provide users a way to plan travel-related finances.

Lloyds Banking Group entered a partnership with Google in April to build AI agents. According to Lloyds, the project would help "colleagues work more efficiently while improving customer and colleague experiences".

Georges Elhedery, chief executive of HSBC, addressed staff concerns about AI adoption at an investor day event. "We all know generative AI will destroy certain jobs and will create new jobs," Georges says.

"But my initial mission is I need 200,000 colleagues with us on this journey. However many will be left at the end of the journey isn't the problem."