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Standard Chartered Announces Plans To Cut 15,000 Jobs

Standard Chartered Announces Plans To Cut 15,000 Jobs
Millennium City Phase 1 Lobby WiNG / Wikimedia Commons CC BY-SA 3.0

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Standard Chartered Announces Plans To Cut 15,000 Jobs

Standard Chartered has announced its new strategy to make the company more profitable, which would include the laying off of as much as 15,000 jobs by 2018.

Standard Chartered has announced its new strategy to make the company more profitable, which would include the laying off of as much as 15,000 jobs by 2018. The said move is part of hopes to simplify the company’s organization structure and in doing so achieve a cost rationalization of $2.9 billion from now until 2018.

Standard Chartered is working on identifying more than $100 billion of assets that must be restructured or exited. Among them are turnaround for the company’s Retail and Commercial banking business in Korea along with the exit of non-strategic business. Aside from this, the company is also looking to either improve or exit low returning client relationships.

As part of its strategy, Standard Chartered said it is looking to restructure its three client businesses. There will be a reduction of capital intensive products in the company’s corporate and institutional banking to achieve as much as $50 billion in RWA optimization. And as for retail banking, Standard Chartered plans to accelerate its transformation by concentrating on large cities that deliver a return on equity (RoE) above 10%.

While the company cuts cost by freeing up capital for investment, Standard Chartered is looking at making an investment worth as much as $3 billion into technology infrastructure and other strategic opportunities. This includes the company’s private banking and wealth management business as well as the further expansion of business in Africa and capitalizing on its franchise in China. At the same time, the company is also looking at investing on improvements on its retail client systems and digital capability. In fact, Standard Chartered believes that 30% of its sales and 40% of its payments will be online by 2018.

Standard Chartered believes it will face around $3 billion in restructuring charges at the end of 2016.

About Jennifer Ong

Jennifer Ong has been covering and writing stories since 1998. Over the years, she has worked on stories on business, health, lifestyle, entertainment and travel. She has also previously written shows for television. When she's not on the job, she enjoys wine and Formula 1.

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