Standard Chartered Bank on Thursday announced the closure of its global equities business and a decision to cut 4,000 jobs in the retail banking business to cut costs and exit non-core and underperforming businesses to improve profitability.
Following the group’s decision in November to achieve at least $400 million (Rs 2,520 crore) in cost savings in 2015, the company on Thursday said that over the last three months around 2,000 jobs have already been cut and another 2,000 job cuts will follow in 2015, taking the aggregate to 4,000. Industry insiders say that the job cut will also impact Indian employees.
Announcing to shut down its global institutional cash equities business , equity research and equity capital market business, the bank said that the move will lead to cost savings worth about $100 million in 2016. Around 200 jobs across seven of its 70 markets (including India) will get affected. The industry insider said that almost 50 of the 200 job losses will be in India.
The move was decided by the company in November after it faced a rating downgrade.
Peter Sands, Group CEO, Standard Chartered bank said, “We are continuing to take significant action on costs by exiting or reconfiguring non-core businesses … We are well on track to deliver at least $400 million of cost saves for 2015, and we are now focussing on achieving further savings for 2016 and beyond….”
The company also clarified that the 2,000 job cuts in 2015 will primarily be achieved by not replacing the staff when they leave and said that it would also achieve, “the previously announced target of 80-100 closures” of branches.
Mid way retirements at top level
New Delhi: On Thursday, the Group also announced retirements of Richard Goulding (55), chief risk officer and Jan Verplancke (51), CIO and head of technology and operations from the Group after they served in the group for 8 and 10 years respectively. In the announcement, the group also announced changes in reporting line stating that the corporate development and strategy functions will move from Peter Sands to Andy Halford, Group finance director with immediate effect. ENS