Standard Chartered to cut jobs

Shares in emerging markets lender Standard Chartered jumped almost 4 per cent higher this morning on reports new chief executive Bill Winters plans to cut up to a quarter of the bank’s most senior staff to reduce costs.

In the memo Winters said that he planned to reduce the number of employees who are graded in bands 1-4, ranging from board members to managing directors, by a quarter.

Mr Winters, a former JP Morgan investment bank boss who took over in June after the ousting of predecessor Peter Sands, said the bank would also make disposals and cut clients.

“In it, he has made it clear that kick-starting performance is a priority, and we are not standing still”.

Winters outlined plans for turning around the bank and said it needed to tighten its belt through targeted reductions and not across-the-board cuts.

The bank’s workforce has doubled in the past 10 years and around 4,000 bankers are in the grade affected by the cuts.

The London-based, Asia-focused finance company has prior to now said “that there is be further crew changes to come” having developed immediately considering that the economic crisis.

The bank has also had to deal with USA regulatory fines and rows with senior investors.

Jaspal Bindra and Viswanathan Shankar, head of Europe, Middle East, Africa and Americas.

Standard Chartered will cut as many as 250 of about 1 000 MD worldwide, two people familiar with the matter said September 4.

In today’s trading, Standard Chartered shares were up four percent at 778.80p, as of 12:49 BST.

Winters will update the market on his strategic review in the coming months, according to the statement.