Standard Chartered is to cut around a quarter of its most senior managers as it attempts to reduce costs amid slowing growth in the emerging markets it focuses on.
Chief executive Bill Winters, who took the helm of the bank in Junefollowing the departure of Peter Sands, will axe approximately 1,000 of 4,000 senior managers over the next few months.
The redundancies are a key part of Mr Winters’ cost-cutting strategy, and will lead to a reduction of management layers at the London-headquartered bank.
It follows plans announced in July to streamline and reorganise Mr Winters’ top tier of management.
The cuts were detailed in a memo to the bank’s 80,000-plus staff.
Bill Winters, chief executive of Standard Chartered
A Standard Chartered spokesman confirmed the existence of Mr Winters’ memo, saying: “He has made it clear that kick-starting performance is a priority, and we are not standing still.
“On headcount, we said previously that there would be further personnel changes to come, as we simplify our organisational structure. We have already acted to reduce management layers, and a result will have up to 25pc fewer senior staff.”
Mr Winters, the former JP Morgan investment banking chief who sat on theIndependent Commission on Banking in the wake of the financial crisis, is under pressure to cut costs following declining profitability at the bank, the key focus of which is Asia and Africa.
As part of his review, the bank is likely to sell assets deemed non-core and exit underperforming countries.
He was appointed earlier in the year after Mr Sands agreed to step down following pressure from shareholders, including Temasek and Aberdeen Asset Management.
Chairman Sir John Peace is also due to step down next year, but a replacement has yet to be named.