StanChart to Cut 1,000 Senior Staff

LONDON—Standard Chartered PLC is cutting around 1,000 of its senior staff, responding to pressure from investors to streamline its business.

The Asia-focused bank said in an internal memo that around a quarter of its 4,000 top managers would be notified by the end of November if they were affected by the cuts, which are already underway.

"We have already acted to reduce management layers, and [as] a result will have up to 25% fewer senior staff," the bank said in a statement. Staff at managing director level and upward are expected to be affected by the cuts.

Standard Chartered is having to shore up its finances following a slowdown in key emerging markets and a collapse in commodities prices. But the bank's chief executive, Bill Winters, is weighing how the lender can avoid raising equity amid a steep drop in Standard Chartered's share price, according to people familiar with the matter. In August, the bank cut its dividend in half and analysts expect management to cut more jobs and underperforming business lines.

Problems are compounded by a Bank of England "stress test," which will focus on banks' exposures to foreign markets. Analysts expect Mr. Winters to outline a plan for the lender before the balance sheet check is published on Dec. 1.

Standard Chartered was a top growth stock for a decade because of its success in tapping the rapid rise in household and business borrowing in Asia and other emerging markets. The bank expanded fast, growing its headcount aggressively, and now employs around 86,000 staff around the world.

Shares in the bank rose almost 4% as news of the management cuts emerged.

Write to Max Colchester at [e-mail]

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(END) Dow Jones Newswires

October 09, 2015 08:35 ET (12:35 GMT)

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