Standard Chartered to Cut 1,000 Senior Staff
09 October 2015 - 11:40PM
Dow Jones News
By Max Colchester
LONDON-- Standard Chartered PLC is cutting around 1,000 of its
senior staff, responding to pressure from investors to streamline
its business.
The Asia-focused bank said in an internal memo that around a
quarter of its 4,000 top managers would be notified by the end of
November if they were affected by the cuts, which are already
underway.
"We have already acted to reduce management layers, and [as] a
result will have up to 25% fewer senior staff," the bank said in a
statement. Staff at managing director level and upward are expected
to be affected by the cuts.
Standard Chartered is having to shore up its finances following
a slowdown in key emerging markets and a collapse in commodities
prices. But the bank's Chief Executive Bill Winters, is weighing
how the lender can avoid raising equity amid a steep drop in
Standard Chartered's share price, according to people familiar with
the matter. In August the bank cut its dividend in half and
analysts expect management to cut more jobs and underperforming
business lines.
Problems are compounded by a Bank of England "stress test,"
which will focus on banks' exposures to foreign markets. Analysts
expect Mr. Winters to outline a plan for the lender before the
balance sheet check is published on Dec. 1.
Standard Chartered was a top growth stock for a decade because
of its success in tapping the rapid rise in household and business
borrowing in Asia and other emerging markets. The bank expanded
fast, growing its headcount aggressively, and now employs around
86,000 staff around the world.
Shares in the bank rose almost 4% as news of the management cuts
emerged.
Write to Max Colchester at max.colchester@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 09, 2015 08:25 ET (12:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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