Standard Chartered Continues Drastic Moves to Right Size
Yesterday, on January 8, 2015, United Kingdom (UK) based bank, Standard Chartered announced a sizeable round of job cuts and division closures. The bank’s decision, and general situation, are the result of sinking share prices, lackluster economic performance in Asia and the European Union (EU), growing compliance costs and losses from distressed assets.
Standard Chartered has already taken drastic measures to right size the bank’s financials. In 2014, the bank cut 2,000 consumer banking jobs, and shut 22 branches. According to a statement released by Standard Chartered, an additional 2,000 consumer banking jobs will be cut. As many as 80 branch closings are also expected in 2015.
The actions announced by the bank, are part of a larger commitment made to investors last year, in which Standard Chartered promised to “deliver at least $400 million in cost saves targeted for 2015.” The bank’s moves to close the “loss-making” institutional cash equities, equity research and equity capital markets activities are expected to result in $100 million in cost savings by 2016.
- Standard Chartered Statement: https://www.sc.com/en/news-and-media/news/global/2015-01-08-taking-further-action-on-strategic-plan.html