Another major investment bank is initiating a process of laying off employees to cut costs. Standard Chartered Plc is allegedly planning to shed about 100 employees in its main hubs in Hong Kong, London, and Singapore as part of its widespread cost-saving measures.
Standard Chartered to Lay Off 100 People
According to Bloomberg, the Asia-focused lender began downsizing mid-level employment in digital transformation and human resources departments a few weeks ago. This is part of a much larger cost-cutting process that is expected to reduce costs by more than $1 billion in this and next year.
A few managing directors associated with financial markets in London are reportedly expected to lose their jobs, suggested one of Bloomberg's anonymous sources. The total number of job cuts across the three offices could exceed 100, but final decisions have yet to be made.
A Standard Chartered spokesperson commented that reviewing positions at different levels of the bank’s corporate ladder is 'normal business activity’, designed to ensure efficiency in delivering business strategy.
According to Standard Chartered's CEO, Bill Winters, the global banking system will cope with current turbulence, but it is still feeling the aftermath of the collapse of several local banks in the United States.
The mentioned turbulence is causing a hiccup in many institutions and large lenders, who have recently announced cost reductions and layoffs.
Goldman Sachs, Morgan Stanley, and JPMorgan Are Cutting Jobs
Last week, Goldman Sachs reported more job cuts, starting the third round of layoffs in nine months. The publicly listed lender stated that significant declines in deal-making activities were the main reason for this move.
Goldman Sachs was one of the first banks to begin a series of drastic job cuts on Wall Street last year, resulting in several hundred people losing their jobs. Then, in January 2023, the institution eliminated an additional 3,200 positions.
Apart from Goldman, Morgan Stanley announced job cuts, planning to reduce employment by 3,000 people. According to information from late May, the move will include several top bankers, including Clarence Kwok, an expert in Chinese mergers and acquisitions, Tony Yin, a technology coverage specialist, and Julia Xiao, a figurehead in corporate finance.
In addition, JPMorgan Chase plans to bid farewell to 1,000 employees after acquiring the failed First Republic Bank (FRB). As reported by Finance Magnates, the cut will primarily affect people from the newly acquired unit, potentially impacting one in five of its existing employees.
UBS remains the dubious record holder in layoffs. In April, news surfaced that the institution is prepared to cut employment by 36,000 following its acquisition of Swiss Credit Suisse.
