Standard Chartered axes 15,000 more jobs

Bill Winters took over as chief executive in June. Picture: PA
Bill Winters took over as chief executive in June. Picture: PA
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Emerging markets bank Standard Chartered has announced plans to axe 15,000 jobs globally alongside a $5 billion (£3.3bn) shareholder rights issue as part of a radical reshaping.

It came as recently appointed new chief executive Bill Winters revealed yesterday that the group sank $139 million (£90m) into the red in its third trading quarter.

That compared with a profit of $1.5bn (£972m) a year earlier, as Standard Chartered has been buffeted by tough trading conditions in its core markets, particularly China and India. The bank’s shares fell 6.7 per cent to 666p.

The latest redundancies are on top of the 5,000 slashed so far in 2015.

Standard Chartered did not give a regional breakdown of the job cuts, but the vast majority of its 86,000 staff are in Asia, the Middle East and Africa.

However, about 1,800 are based in London, where there is a trading floor, administrative functions and customer relationship managers. The cuts are to be made by 2018 and will involve cost savings of $2.9bn.

A bank spokesman said: “The job losses are across the piece. We are not providing further granularity.”

Winters, who succeeded Peter Sands in June, said the cash call on investors would bolster the group’s balance sheet as the bank also changed its focus away from institutional and corporate banking to private banking and wealth management.

Winters was also a member of the Vickers Commission on British banking in 2011 whose key recommendation approved by the government was to ring-fence retail banking from riskier investment banking.