Standard Chartered has announced the closure of its institutional cash equities, equity research and equity capital markets “ECM” activities, in an effort to reconfigure “underperforming businesses”.
This decision has resulted will results in around 2,000 job cuts in 2015 – with around 200 jobs being lost in the SEA region. This is in addition to around 2,000 jobs cut in the past three months as a result of accelerating a switch to digital in the retail clients segment, a press release stated.
These efforts aim to deliver at least US$400 million in cost savings in 2015, which “the group is already on track to achieve”.
The closure of the loss-making institutional cash equities, equity research and ECM operations will deliver around US$100m of cost savings in 2016, and will impact approximately 200 roles across seven of the group’s 70 markets. In 2015 run-rate savings will broadly offset restructuring costs.
“We are demonstrating action and progress as the management team focuses on delivering returns for shareholders. We are continuing to take significant action on costs by exiting or reconfiguring non-core and underperforming businesses, and by increasing the efficiency of our core businesses,” said Peter Sands, group CEO.
“We are well on track to deliver at least $400m of cost saves for 2015, and we are now focussing on achieving further cost savings for 2016 and beyond as we continue creating capacity to invest in the group’s core businesses.”
Standard Chartered told ChannelNews Asia that it remains committed to the Singapore market, despite around 200 job losses across Hong Kong, Indonesia, Korea, India and Singapore. Standard Chartered employs around 7,000 people in Singapore.
“As part of the Group’s on-going review of its client strategy, the decision has been taken to exit the institutionally focused cash equities business with immediate effect,” added Mike Rees, deputy group CEO.
“While this has sadly resulted in a number of colleagues leaving the bank, a transition team will remain to manage the interim period and support our clients.”