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Bank cuts back just nine months after ambitious expansion
More than 200 local jobs will be lost at Standard Chartered Bank,   a bank spokesman confirmed yesterday.
The layoffs account for about    3.6 per cent of the bank's Hong Kong headcount of  more than 5,500 employees and come less than four weeks after it denied  there would be staff redundancies.
The job losses at London-based Standard Chartered will bring the number of Hong Kong layoffs in the banking industry since the middle of October to about 2,000. Just nine months ago, the bank announced ambitious expansion plans, including hiring up to 600 new recruits.
The bank started  giving letters to affected staff yesterday, and the layoffs are expected to be completed by the first quarter of next year, the spokesman said. The lost jobs include staff affected by the  bank moving its call centre to Shenzhen.   Employees may be redeployed but not in significant numbers, the spokesman said.
There was no breakdown of job positions or departments affected by the layoffs.
Redundant staff who are eligible for a year-end discretionary bonus will be paid on a pro  rata basis. Compensation terms for affected employees exceeded those required by law, the spokesman said.
Unaffected staff were assured that salaries would not be cut.
'This is a difficult decision to make. Hopefully, this will be a one-off exercise,' the spokesman said. 'An internal review showed us that our Hong Kong business is under some pressure.'
The spokesman declined to comment on how much the layoffs would save the bank.
The global financial crisis, soured investments, volatile markets and poor consumer sentiment are all taking a heavy toll on the banking and finance industry.
Last week, Standard Chartered, which relies on Asia for most of its profits, announced plans to raise  GBP1.779 billion (HK$21 billion) by allowing its shareholders to buy  extra stock.
Firms have been quick to reduce staffing levels as the business environment sours, despite pleas  from the government to retain  as  many employees as possible.
Layoffs have affected most major banks  in the city, including HSBC  and DBS,  amid a dire earnings outlook for next year.
Job losses have risen in recent weeks, with corporate cost-cutting  by major companies in different sectors. The unemployment rate rose by 0.1 of a percentage point in October to 3.5 per cent  - the highest level in 11 months.
It is expected to rise to about 5 per cent or 6 per cent by next year.
Predicting when the economy will rebound is proving difficult given the uncertain outlook and the global impact of the financial turmoil. Although the Hong Kong economy is generally expected to be in a recession until at least the middle of next year, some estimates put the downturn at two to three years.
Hong Kong's economy contracted in the past two quarters.



Standard Chartered lays off 200 due to economic gloom