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Standard Chartered announced on Tuesday that it is cutting15,000 jobs, or about 17 percent of its workforce. Globally, the bank employs 86,000 people, but only about 1,800 employees are UK-based. The major cuts are intended to save the bank $2.9 billion worth of expenses.
The British multinational banking and financial services firm said the move is part of a three-year restructuring plan, which has been anticipated since Bill Winters took over as CEO in June.
The restructuring will focus on creating a “lean, focused, and more profitable bank” that will seek to raise £3.3bn ($5.1 billion) to bolster the bank’s capital ratio as well as strengthen the balance sheet. It will also either reorganize or sell off $100 billion of risky assets.
The announcement follows an unexpected third quarter pre-tax loss of $139 million, compared with a profit of $1.5 billion a year ago.
Shares fell as much as 8.7 percent on the news, the biggest fall in more than 3 years. The shares have lost more than 30 percent this year.