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Investing.com - The shares of Standard Chartered (LON:STAN) PLC (HK: 2888) rose 0.71% to HK$56.5 on Monday despite a report that the group plans to cut workers to reduce costs.
The Financial Times reported on Friday, citing sources, that the bank is eyeing a layoff to reduce costs as investors grew frustrated over its performance. The plan could come later this month when the bank posts its results for the third quarter.
The source also said that it plans layoffs in its Middle East and Africa division, which could lead to job cuts of up to 300 people. The bank was also said to impose a partial hiring freeze and restrictions on staff travel to reduce costs.
Shareholders were concerned with the turnaround plan by the bank’s chief executive Bill Winters to reach an 8% return on equity, but analysts at Autonomous put the estimated figure at “barely 5%” this year.
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