Liverpool FC’s shirt sponsor Standard Chartered could cut up to 1,000 senior jobs, according to an internal staff memo from chief executive Bill Winters. “While a few will come from efficiencies we will also look to divest where we are not differentiated and an activity, business or location is not critical to a core strength”, Winters said in the memo.
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Winters also said in the memo his plans were not all about cuts and he had identified areas for investment, to make room for which the bank would cut the number of its clients.
Winters is expected to outline his plans to investors and staff in November or December. There are understood to be in the region of 4,000 staff at the grades affected by the decision.
“While we incorporate a $4 billion capital shortfall in our valuation, we see scope for new management to restructure the company, addressing both capital and returns”, the analysts said in a note, upgrading the Stanchart stock to “buy”.
The shares rose 5.6 percent to 790.40 pence at 2:58 p.m.in London, extending their gain this week to about 19 percent.
Shares in Standard Chartered (LON:STAN) ticked higher Friday as it emerged the troubled bank was planning to slash up to a quarter of its senior staff – underlining the scale of its cost cutting drive.
Standard Chartered hired Mark Smith from Asia-focused rival HSBC to join as new chief risk officer.
Winters said the bank was making progress in improving its processes and systems, its behaviours and remediating past issues, and told staff any violations would not be tolerated.
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The bank said today it had “made it clear that kick-starting performance is a priority”.
