Standard Chartered to Cut Hundreds of Staff in Cost-Cutting Drive

Asia-focused bank to reduce overlapping roles in servicing customers, as part of a restructuring program since raising fresh capital a year ago

 Standard Chartered Standard said in November 2015 it would cut 15,000 jobs over the next three years. A person familiar with the matter said the “few hundred” jobs going now are part of that figure. Photo: Chris Ratcliffe/Bloomberg News
Standard Chartered Standard said in November 2015 it would cut 15,000 jobs over the next three years. A person familiar with the matter said the “few hundred” jobs going now are part of that figure. Photo: Chris Ratcliffe/Bloomberg News

LONDON— Standard Chartered PLC is laying off hundreds of people working in corporate and institutional banking as it steps up its drive to cut costs.

The Asia-focused bank will reduce overlapping roles in servicing customers, as part of a rejig of its structure and activities since raising fresh capital a year ago. Standard Chartered said in November 2015 it would cut 15,000 jobs over the next three years. A person familiar with the matter said the “few hundred” jobs going now are part of that figure.

In a memo to staff Monday, Standard Chartered said it is “putting our relationship managers at the centre of client relationships; diversifying our client portfolio and improving processes such as client on-boarding times and how we make lending decisions.”

It said duplicate functions and the need to free up money for technology investments meant “a small number of existing roles will be impacted.”

Earlier this month, Standard Chartered Chief Executive Bill Winters said the bank’s financial performance is “not yet acceptable” and that it was still working on its multiyear restructuring.

On Wednesday, the results of stress tests on seven major U.K.-based lenders, including Standard Chartered, will be released.

Standard Chartered is considered well capitalized at current levels but analysts say its resilience could be stretched by a scenario of a $20 per barrel oil price and a decline in Hong Kong’s and China’s economies.

 

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