Standard Chartered Said to Cut 12% of Private-Equity WorkforceGeorge Smith Alexander
Standard Chartered Plc, the U.K. bank that earns most of its profit in Asia, plans to cut about 12 percent of the workforce at its private-equity unit, said two people with knowledge of the matter.
The reductions will be spread among senior and junior employees and bring headcount at the division to about 100, said the people, who asked not to be identified because the details are confidential. Most of the job losses will come in Asia, one of the people said.
Chief Executive Officer Peter Sands said this week he’s reviewing the London-based lender’s businesses and will cut back or withdraw from less-profitable areas. Standard Chartered doesn’t expect to hit a target of 10 percent revenue growth for a “couple of years,” he said.
“There are pieces of our portfolio, whether very small geographies, or businesses that lack strategic synergies with other parts of the bank, that we are evaluating very carefully,” Sands told analysts and investors at a Nov. 11 presentation in London.
Standard Chartered’s private-equity unit has invested more than $3.9 billion since its inception and focuses on Asia, Africa and the Middle East, according to its website. It has invested about $275 million in Asia this year, one of the people said.
The bank plans to eliminate three or four private-equity jobs in India, where the unit has made about $750 million of investments, the person said. As part of the changes, Managing Director Udai Dhawan was promoted last week to run the Indian private-equity business, one person said.
Kunal Pradhan, a spokesman for the bank in Mumbai, declined to comment on the changes in an e-mailed response to questions from Bloomberg News.