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. David Pollard reports.
Turnaround plans are in fashion for the banking sector. After Deutsche Bank's announcement of huge writedowns earlier this week, it's Standard Chartered's turn. Around 1,000 jobs are to go, it's reported - not much compared to the 23,000 expected to be cut at Deutsche. But those at Standard are all top grade staff, including bankers at director level and above. In August, the bank said it had already cut 4,000 staff, or around 4% of its workforce, since the start of the year. Disposals and shedding clients are also part of the plan, according to a memo seen by Reuters. Standard has had a troubled three years. On its list of woes: weakness in its key emerging markets, rising losses from bad loans and fines from regulators. And: a share price that's fallen 43 per cent since the start of last year. In the memo, the bank's new chief exec Bill Winters talks of a need for "decisive and immediate" action. He's expected to outline his plans to investors and staff next month.