8-6-2023 (SINGAPORE) Standard Chartered has begun laying off employees in Singapore, London, and Hong Kong as it moves forward with its existing cost-cutting strategy, aiming to reduce expenses by more than US$1 billion by 2024, according to a report by Bloomberg News on Wednesday (Jun 7).
The British bank had previously announced its goal of slashing US$1.3 billion as part of its cost-efficiency program.
While a final figure has yet to be determined, the total job cuts could exceed 100, as stated by individuals familiar with the matter, as reported by Bloomberg.
Recent weeks have seen the bank initiate role reductions in middle-office functions such as human resources and digital transformation across Asia, Bloomberg stated.
Furthermore, a source, who requested anonymity due to the sensitive nature of the information, revealed that a number of managing directors in financial markets have been let go in London.
StanChart’s spokesperson informed Reuters via email that reviewing role requirements on an ongoing basis across the bank is a regular business activity.
Standard Chartered’s move follows the trend of major banks cutting jobs.
Goldman Sachs is expected to reduce its workforce by just under 250 positions in the coming weeks, while JPMorgan Chase plans to cut around 500 employees, as reported by Reuters in May.
StanChart, whose primary revenue comes from Asia, reported a 21% increase in first-quarter profit, surpassing expectations. The rise in interest rates contributed to the growth in income from its cash management and retail banking businesses.
The bank recorded a pre-tax profit of US$1.81 billion for January-March, up from US$1.49 billion the previous year, surpassing the average estimate of US$1.43 billion from 14 analysts compiled by the bank. This marks the largest first-quarter profit for StanChart in nine years.
However, its financial markets trading segment, which is its primary income generator, experienced weaker activity compared to the previous year when markets witnessed record levels of volatility.
Meanwhile, StanChart’s significant market, Hong Kong, is still in the process of recovering from an extended period of economic contraction, as highlighted by Bloomberg.
Earlier this year, the bank sold its Jordanian business to Arab Jordan Investment Bank (AJIB) as part of its ongoing plan to exit seven markets in Africa and the Middle East.
