Standard Chartered may be cutting 1,000 senior jobs!
The London based bank: Standard Chartered is a bank that
makes most of its profits in Asia, is a bank that is considered a “lender”
bank, it lends out loans extra.
Staff were informed of the fact that there could be up to
1,000 job cuts in coming time. The jobs that will be cut are all internal; to
the best of knowledge there will be no external cuts.
Standard Chartered has made drastic changes in recent times
to help “cut costs.” For example the changed from chief excusive Bill Witers
and made it redundant.
The bank had recently had a finance crisis and during this
time, they were in recovering and fast recovery too. In order to do this they
added more sate and cut down on fixed costs. But now that they are out of the
crisis they can increase their fixed costs again but that means that hey have
to get rid of the access staff that they brought in. some of the safe that they
brought in were purely there to help the bank with the crisis and now they are
out of the crisis their services are no longer required.
But they are not done yet, in order to keep fixed costs low
while still creating a sizable profit, they sent out a second email to their
staff saying that on top of the 1,000 job cuts there will be “more personnel
changes to come.”
As a part of recovery the bank is almost rearranging their
employment scheme and hierarchy. They are cutting down on large numbers of
staff, but only in the management section, the company does not seem to be
looking at firing the workers at the bottom of the hierarchy. With all the
employment changes already mention, they are still reducing more, they are
decreasing the senior staff by 25% and they have already cut management
lawyers. But its not just senior managers and management lawyers but also directors
would be cut too.
After the bank has cut of 25% of their employees there will
only be 3000 bankers left in the sections that have been affected by cuts.
This change has been so rapid because the recover stages are
nearly over and therefore they need to prepare to be a complete bank again and
be fully functional as well but they cannot do this if their fixed costs are so
high because of salaries and any other employment payment.
http://www.bbc.com/news/business-34488400
