Standard Chartered to axe 15,000 jobs, move more business online

Standard Chartered to axe 15,000 jobs, move more business online

Standard Chartered is to cut 15,000 jobs and accelerate its retail transformation strategy after reporting an unexpected $139 million loss for the third quarter.

Shares in the bank plunged as management unveiled a restructuring plan intended to save $2.9 billion by 2018 and embarked on a $5.1 billion rights issue to strengthen the balance sheet and fund the turnaround. The bank has already gone through a painful re-adjustment after issuing three profit warnings last year and cutting up to 4000 retail jobs.

The updated strategy will entail an investment of more than $3 billion in strengthening its technology and compliance and risk functions while investing in more profitable and less capital-intensive business opportunities.

The retail component will see the bank exit countries where it has a smaller presence and instead focus on emerging affluent clients in larger cities that deliver above 10% return on investment.

The bank says it will improve retail client systems and digital capability, aiming to reach 30% of sales and 40% of payments online by 2018.

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