Standard Chartered’s new chief executive Bill Winters plans to cut up to a quarter of the bank’s most senior staff to reduce costs, according to a memo sent to staff, which is likely to see about 1,000 top jobs go.
Mr Winters said he planned to reduce the number of staff who are graded in bands 1-4 by a quarter, according to an internal memo. Those bands cover bankers at director level and higher, and include about 4,000 staff.
“Our situation requires decisive and immediate action. Each member of the management team has a mission to drive through improvements in our returns and part of this will be further streamlining of our organisation, eliminating management layers and duplication of roles,” Mr Winters told staff.
Winters, a former JP Morgan investment bank boss who took over in June, said the bank would also make disposals and cut clients as part of his strategic review.
Disposals would be in areas where the bank was “not differentiated” or an activity or location “was not critical to a core strength.”
Standard Chartered has had a troubled three years, hurt by weakness in many of its key emerging markets, rising losses from bad loans in India, China and on commodities, as well as fines from US regulators and strained relations with shareholders.