StanChart cuts 4,000 jobs in savings drive
STANDARD Chartered closed its cash equities business yesterday, cutting 200 jobs across the world.
The British-headquartered emerging markets bank has now cut 2,000 jobs and expects to cut another 2,000 this year, as it restructures its business to save money and shore up profits.
StanChart expects to achieve most of this by not replacing staff when they leave, rather than through outright firings. After a decade of making record profits every year, and riding out the financial crisis in good health, StanChart has been hit by slowing growth in emerging markets.
It launched a plan in November to deliver $400m (£265m) of cost savings in 2015, but yesterday the bank indicated it might exceed that target.
Progress has been accelerated by a rapid switch of some retail operations from branches and into digital.
Analyst Ian Gordon from Investec said he was “materially encouraged by further evidence of the breadth of initiatives now underway to take out costs.”
Chief executive Peter Sands promised more savings in the years to come.
“We are well on track to deliver at least $400m of cost saves for 2015, and we are now focussing on achieving further cost savings for 2016 and beyond as we continue creating capacity to invest in the group’s core businesses,” the embattled boss said.
StanChart’s shares rose 0.93 per cent.